Rupee Gains Support From Strong Yuan and RBI Defense
The rupee is set to rise as the offshore yuan hits a three-year high. Central bank support near 91 helps offset pressure from corporate dollar demand.
The Indian rupee is expected to find some relief on Thursday, buoyed by a broader rally in Asian currencies that has seen the offshore yuan reach a three-year high. Following a settlement at 90.9475 on Wednesday, the 1-month non-deliverable forward indicates the rupee will open in the 90.86-90.88 range against the U.S. dollar. The currency has recently relied on support from the central bank in India[Country:{ "assets":{ "country":"IN" } }] to maintain its position above the 91-per-dollar level, with state-run banks frequently selling dollars near that mark. While this defense has managed short-term expectations, the rupee remains under structural pressure due to consistent corporate dollar demand and weak portfolio inflows.
