The Indian rupee opened higher against the US dollar on October 16, with offshore traders cutting bets against the Asian currency and expectations of continued central bank dollar selling lending support.
The rupee extended its gains on sixth consecutive day and opened higher by 33 paise at 94.72 per dollar, compared with Thursday’s close of 95.05.
According to Finrex, rupee to open at 94.66 today and looks to be in the range of 94.50 to 95.25 as RBI issued FAQs on the levy of FERR on buy side forward contracts.
After the clarifications by RBI we can expect forward premiums to come down to some extent after they rose in yesterday’s closing.
Exporters to continue selling taking advantage of the forward premiums while importers to buy the dips, it added.