MUMBAI, May 27 (Reuters) – The Indian rupee is expected to open weaker on Wednesday, vulnerable to slipping past the 96-per-dollar mark once again as hopes for an imminent end to the Middle East conflict have ebbed, keeping portfolio and merchant flows skewed against it. <\/p>\n
\n The currency is expected to open in a 95.78 to 95.83 range, traders said, against its 95.68 previous close. <\/p>\n
\n Iran said on Tuesday the U.S. had violated a ceasefire by striking targets near the contested Strait of Hormuz, potentially complicating efforts to bring the three-month-long war to a close.<\/p>\n
\n Brent crude fell in Asia trading but stayed in the vicinity of $100 per barrel, weighing down oil-sensitive Asian currencies such as the Indonesian rupiah and Philippine peso. <\/p>\n
\n Worries over the economic risks to India from the Iran war have kept foreign portfolio capital in a steady exit mode with overseas investors selling more than $24 billion of Indian stocks and bonds between March and so far in May. <\/p>\n
\n Alongside elevated energy prices and disrupted exports, this has left India staring at a steep balance of payments gap for the fiscal year ending March 2027. <\/p>\n
\n “Despite relatively strong macroeconomic fundamentals, structural import dependence continues to bias the currency lower,” Deepali Bhargava, regional head of research for Asia Pacific at ING, said in a note. <\/p>\n
\n “We expect USD\/INR to end the year at 95.50, with risks skewed more towards gradual stabilisation than a disorderly weakening.” <\/p>\n
\n Meanwhile, stocks in Asia advanced led by tech-heavy indexes in Korea and Taiwan while futures pointed to a muted start for Indian shares. <\/p>\n
\n India’s position as the fifth-largest global market by capitalisation is under threat as Taiwan closes in on the South Asian nation’s spot, powered largely by the rapid rise of chip-making major Taiwan Semiconductor Manufacturing Co. <\/p>\n
KEY INDICATORS:<\/p>\n
\n ** One-month non-deliverable rupee forward at 96.20; onshore one-month forward premium at 37 paisa<\/p>\n
\n ** Dollar index at 99.12<\/p>\n
\n ** Brent crude futures down 0.8% at $98.8 per barrel<\/p>\n
\n ** Ten-year U.S. note yield at 4.48%<\/p>\n
\n ** As per NSDL data, foreign investors bought a net $230.5mln worth of Indian shares on May 25<\/p>\n
\n ** NSDL data shows foreign investors sold a net $20.3mln worth of Indian bonds on May 25<\/p>\n
(Reporting by Jaspreet Kalra; Editing by Mrigank Dhaniwala)<\/p>\n
\n By Jaspreet Kalra<\/p>\n","protected":false},"excerpt":{"rendered":"MUMBAI, May 27 (Reuters) – The Indian rupee is expected to open weaker on Wednesday, vulnerable to slipping…\n","protected":false},"author":2,"featured_media":468923,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60,123],"class_list":["post-468922","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/468922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=468922"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/468922\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/468923"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=468922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=468922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=468922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}