By Nimesh Vora
MUMBAI (Reuters) – The Indian rupee is expected to broadly struggle on Friday in the wake of an uptick in the dollar amid hawkish Federal Reserve interest rate projections.
Non-deliverable forwards indicate the rupee will open at 83.55-56 to the U.S. dollar, compared with 83.5425 in the previous session.
The rupee was within sight of the all-time low of 83.5750 that was largely avoided on the intervention by the Reserve Bank of India, both in non-deliverable forward (NDF) and spot markets.
“Will the RBI allow a new higher range (for the dollar/rupee) is what is it about right now,” a currency trader at a bank said.
“It is irrelevant at this point to discuss the merit or otherwise (of allowing the rupee to weaken in the backdrop of the overall dollar strength). You just play the price action.”
The dollar index was back to the 105 handle, despite a soft U.S. producer price…
