The Indian rupee reversed earlier declines on Friday triggered by China weakening the yuan’s daily fixing by the most in more than two years.
At 9.45am, the rupee was trading at 68.97, up 0.13 percent from its previous close of 69.05. It opened at 68.97.
Ananth Narayan, market expert and Venkat Nageswar Chalasani, deputy managing director – global markets of State Bank of India (SBI) shared their views on the rupee.
“Global context will remain uncertain. So far oil prices and dollar index as a whole has been controlled by these periodic tweets from US President Donald Trump,” Narayan told CNBC-TV18.
“On the rupee overall, there are some silver lining as well. It is not all while yesterday’s move was quite sharp in the back of yuan, oil prices have come off in the recent days,” he added.
“Rupee uncertainty hasn’t gone away. There is a basic imbalance that we are grappling with. There is an overhang of unhedged positions. Things aren’t as bad as they were in 2013, Reserve Bank of India (RBI) has plenty of reserves, there is no panic in the market and there are some positive silver lining,” said Narayan.
“Major issue that we are looking at is the global trade war that is happening but one of the positives over that is that it is likely to reduce the commodity prices in terms of the oil prices which is going to be a psotive for the Indian market. Therefore I am not overtly worried about the way the rupee has depreciated now,” said Chalasani.