AIRLINK 172.40 Decreased By ▼ -0.75 (-0.43%)
BOP 10.59 Decreased By ▼ -0.06 (-0.56%)
CNERGY 8.39 Decreased By ▼ -0.13 (-1.53%)
CPHL 103.71 Increased By ▲ 6.25 (6.41%)
FCCL 46.40 Decreased By ▼ -0.85 (-1.8%)
FFL 15.40 Decreased By ▼ -0.02 (-0.13%)
FLYNG 27.50 Decreased By ▼ -0.63 (-2.24%)
HUBC 137.70 Decreased By ▼ -1.21 (-0.87%)
HUMNL 12.85 Increased By ▲ 0.04 (0.31%)
KEL 4.48 Decreased By ▼ -0.06 (-1.32%)
KOSM 5.41 Decreased By ▼ -0.14 (-2.52%)
MLCF 61.64 Decreased By ▼ -0.62 (-1%)
OGDC 214.00 Decreased By ▼ -0.75 (-0.35%)
PACE 5.47 Decreased By ▼ -0.08 (-1.44%)
PAEL 46.55 Increased By ▲ 1.69 (3.77%)
PIAHCLA 18.85 Increased By ▲ 0.15 (0.8%)
PIBTL 10.63 Decreased By ▼ -0.11 (-1.02%)
POWER 12.51 Increased By ▲ 0.25 (2.04%)
PPL 171.75 Decreased By ▼ -2.12 (-1.22%)
PRL 36.21 Decreased By ▼ -0.01 (-0.03%)
PTC 23.47 Decreased By ▼ -0.09 (-0.38%)
SEARL 98.35 Increased By ▲ 3.04 (3.19%)
SSGC 40.18 Increased By ▲ 1.05 (2.68%)
SYM 13.99 Decreased By ▼ -0.03 (-0.21%)
TELE 7.22 Decreased By ▼ -0.01 (-0.14%)
TPLP 10.23 Decreased By ▼ -0.06 (-0.58%)
TRG 64.00 Decreased By ▼ -0.68 (-1.05%)
WAVESAPP 10.08 Increased By ▲ 0.04 (0.4%)
WTL 1.32 Decreased By ▼ -0.01 (-0.75%)
YOUW 3.67 Decreased By ▼ -0.03 (-0.81%)
BR100 12,425 Decreased By -66.4 (-0.53%)
BR30 37,569 Decreased By -125.2 (-0.33%)
KSE100 115,765 Decreased By -424.2 (-0.37%)
KSE30 35,535 Decreased By -215.3 (-0.6%)

MUMBAI: The Indian rupee is likely to open slightly lower on Monday as expectations surrounding the incoming Trump administration’s policies keep the dollar well-bid despite heightened hopes of a Federal Reserve rate cut this month.

The 1-month non-deliverable forward indicated the rupee would open at 84.69-84.70 to the US dollar, compared with its close of 84.6875 in the previous session.

The odds of a 25-basis point rate at the Fed’s Dec. 17-18 meeting have risen – to 83% from 66% – after payrolls data showed job growth was roughly in line with expectations in November, while the unemployment rate nudged higher to 4.2%.

The heightened odds though, are unlikely to help regional currencies substantially amid the lingering prospect of US President-elect Donald Trump raising trade tariffs.

“We doubt Asian FX can strengthen further from here, especially in H1 2025, given the likelihood that Trump 2.0 will be fast and furious in tariff implementation, making it somewhat attractive to put on some hedges against Asian FX weakness,” MUFG Bank said in a note.

The dollar index was at 106.05 after rising 0.5% on Friday, while US bond yields dipped after the labour market data. Asian currencies were mostly lower, with the Korean won down 1% and leading losses.

Indian rupee slips to record low

A reversal in portfolio outflows from India may offer the rupee some breathing room though, with foreign investors turning net buyers of stock and bonds worth over $4 billion in December so far after two months of sustained outflows.

The rupee’s pace of decline “could moderate heading into year-end,” but the bias continues to be towards gradual deprecation below 85, a trader at a state-run bank said.

Comments

200 characters