Interbank Dawn Uptick: Rupee Gains as Dollar Slips
The Interbank Dawn Uptick set a positive tone for currency markets on Tuesday. The rupee opened stronger against the US dollar during early inter-bank trading. By 10:05am, the rupee traded at 280.15 per dollar. That move showed a gain of 16 paisas from the previous close.
Traders welcomed the calm start to the session. As a result, sentiment remained steady in early dealings. Market participants linked the move to global trends. However, they also watched local demand closely.
Global Cues
Global signals played a key role in the Interbank Dawn Uptick. The US dollar weakened during Asian trading hours. The dollar index slipped near a two month low. Therefore, emerging market currencies found brief support.
Investors awaited delayed US jobs data. In addition, they tracked fresh manufacturing indicators. Rate expectations stayed unchanged ahead of the next US central bank meeting.
As a result, the dollar lost momentum across major pairs. Against the yen, the greenback edged lower. Meanwhile, traders looked ahead to a key policy decision in Japan. These signals reduced pressure on regional currencies. Consequently, the local unit benefited in early hours.
Oil Watch
Oil prices also shaped market mood during the Interbank Dawn Uptick. Crude prices fell again in early trading. Brent slipped toward $60 per barrel. US crude also traded lower during the session. Lower oil prices often support currency balance. Therefore, traders viewed the dip as mildly positive.
Hopes for progress in Eastern Europe talks influenced prices. In addition, weaker demand data weighed on crude. Analysts advised caution despite the early gain. They expect range bound trade in the near term. The rupee may see mixed moves during the day. However, stable global cues could limit volatility.
