The Indian rupee is expected to open little changed on Tuesday amid a mostly weaker dollar and expectations that the Reserve Bank of India may step in. Non-deliverable forwards indicate the rupee will open barely changed from 82.04 in the previous session.
With the RBI “at least on the face of it” capping the downside (on USD/INR) at 81.80-81.85 and the dollar struggling overall, expect a range of 20 paisa on either side of 82, a foreign exchange trader said. The USD/INR implied volatility will remain “depressed”, the trader added.
The data “will provide the committee with fresh insight on demand and output for the cyclically sensitive goods and manufacturing sectors”, ANZ said in a note. Asian currencies were higher during the day, while equities were mostly lower despite the positive session for their U.S. peers.