INDIA RUPEE-Rupee little changed, traders cite 'mild' dollar sales from state-run banks

Credit: REUTERS/Amit Dave

By Jaspreet Kalra

MUMBAI, March 28 (Reuters) - The Indian rupee was little changed on Thursday, paring early gains as dollar sales from state-run banks offset demand from local corporates and slight weakness in broader Asian peers.

The rupee INR=IN was at 83.3625 against the U.S. dollar as of 11:10 a.m. IST, compared to its previous close of 83.3725. It had opened at 83.3175.

The local unit fell to a record low of 83.45 in the closing minutes of Wednesday's session but managed to recover on likely intervention from the Reserve Bank of India, traders said.

State-run banks were "mildly" on offer early in the session on Thursday, four traders said.

While dollar sales from state-run banks spurred speculation that the RBI might be intervening in the market, a senior FX trader at a private bank noted that it's hard to say for certain.

"Banks may have their own activity to carry on as well given it's the end of the financial year," the trader added. Thursday is the last trading day of the current financial year, and currency markets will be closed on Friday and Monday.

The dollar index was down slightly at 104.34, while most Asian currencies slipped with the Malaysian ringgit lower by nearly 0.3% and leading losses.

The rupee is likely to hover between 83.25 and 83.45 during the day, said Arnob Biswas, head of foreign exchange research at SMC Global Securities.

Meanwhile, the odds of a U.S. rate cut in June dipped to 64% from about 70% a day earlier, following remarks from Federal Reserve Governor Christopher Waller.

Recent data "tells me that it is prudent to hold this rate at its current restrictive stance perhaps for longer than previously thought to help keep inflation on a sustainable trajectory toward 2%, Waller said on Wednesday.

(Reporting by Jaspreet Kalra; Editing by Varun H K)

((jaspreet.kalra@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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