Rupee Steady At 82.76 Per Dollar, Even As Risk Assets Make A Modest Recovery

Rupee Today: The domestic currency held steady in early trade
Rupee Today: The domestic currency held steady in early trade

The rupee was flat against the dollar in early trade on Wednesday, even as risks assets made a modest recovery after a deep sell-off tracking a shift in the Bank of Japan's (BOJ) policy.

On Tuesday, the BOJ surprisingly decided to allow long-term rates to fluctuate by 50 basis points on either side of its 0 per cent objective instead of the previously announced 25 basis point range, while still maintaining its current expansive stance on monetary policy. 

According to Bloomberg, the rupee was last at 82.7600 per dollar in early trade, compared to its previous close of 82.7550 on Tuesday.

PTI reported that the domestic currency fell 5 paise to 82.75 against the US dollar in early trade.

"After the BOJ action on bond yields yesterday, the rupee fell to 82.88 levels but recovered to 82.73 at closing. This morning, Asian currencies were higher against the dollar," said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.

"The rupee is set to trade around 82.70 against the dollar in early trade and remain in a range of 82.40 to 82.90 for the day," he added.

As investors strive to comprehend the Reserve Bank of India's stance on the inflation trajectory and growth rebound, attention will focus to the minutes of the most recent policy meeting, which are scheduled for release later today.

In its monthly report published on Tuesday, the RBI expressed confidence in the prospects for near-term economic development while acknowledging that inflation "may be slightly down, but it is certainly not out."