Indian rupee moves higher against US dollar ahead of economic data

Apr 10 2014, 15:54 IST
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Indian rupee was trading at 60.17/18 against United States dollar from its Wednesday's close of 60.14/15, on caution ahead of a slew of economic data, starting with industrial output on Friday and consumer inflation on Tuesday. (AP) Indian rupee was trading at 60.17/18 against United States dollar from its Wednesday's close of 60.14/15, on caution ahead of a slew of economic data, starting with industrial output on Friday and consumer inflation on Tuesday. (AP)
SummaryIndian rupee was trading at 60.17/18 against United States dollar from its Wednesday's close of 60.14/15, on caution ahead of a slew of economic data, starting with industrial output on Friday and consumer inflation on Tuesday.

Indian rupee was trading at 60.17/18 against United States dollar from its Wednesday's close of 60.14/15, on caution ahead of a slew of economic data, starting with industrial output on Friday and consumer inflation on Tuesday.

The gap between the spot USD/INR and one-month NDF reflects that offshore players expect the dollar to gain against the rupee in the near term.

Dollar bids by state-run banks likely for defence and oil-related payments also supported the pair.

Two traders also cite some election jitters after an unexpectedly weak result in parliamentary elections for the front runner to be Indonesia's next president.

Although the Indonesia election do not have a direct impact on India, these traders say the results by Joko Widodo, or Jokowi, are a reminder that BJP's Narendra Modi could fail to get a majority in the ongoing five-week long elections.

"Narendra Modi is the popular candidate in India and if he falters like Jokowi, in Indonesia, a coalition government is in store for India," said a senior banker with a foreign bank, who expects the rupee to weaken to 62 levels in the near term.

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