USD/INR opened at Rs 69.83 compared to previous close of Rs 69.93. The pair opened lower Tuesday on selling by foreign banks and exporters amid subdued greenback. Foreign banks and exporters are seen covering their long dollar positions taking advantage of the sharp rally in rupee.
Yesterday rupee opened Rs 69.49 and traded with one way weakness trump the day. RBI intervention was near nil. Our sense is that rupee was trying to catch-up with weakness in other currencies like IDR which opened even weaker.
Interbank players would have further added to their long USD positions. For them till now long dollar is making money, after a long time. And therefore it would take real change in global narrative for rupee reversal to start.
Meanwhile, Turkish lira has tumbled on worries over President Tayyip Erdogan's increasing control over the economy and deteriorating relations with the United States.
Sensex rises 177 points higher in opening trade with 18 components in the green; Nifty around 11,400