MUMBAI: The Indian rupee is expected to weaken at open on Tuesday tracking a decline in Asian peers before a slew of important US activity and labour data this week.
The 1-month non-deliverable forward indicated that the rupee will open at 83.94 to the US dollar compared with 83.9175 in the previous session.
The local currency is not far away from the all-time low of 83.9725 hit on Aug. 7. Asian currencies added to Monday’s losses.
The offshore Chinese yuan slipped past 7.1250 to the dollar, and others were down 0.2% to 0.5%. The dollar/rupee pair “will have a bit of a lift with Asia where it is”, a currency trader at a bank said.
“However, unless we move past 84, you will not have any major activity from interbank or corporates.”
The rupee has been avoiding dipping past 84 largely on the back of the central bank’s intervention.
On several occasions last month, the rupee looked like it would weaken past the psychological level, only to be saved by the central bank.