By Nimesh Vora<\/p>\n
MUMBAI, June 5 (Reuters) – The Indian rupee is expected to open broadly unchanged on Friday, with its intraday direction tied to the \u200ccentral bank’s policy outcome, due shortly, including a potential rate hike \u200cand steps to attract dollar inflows.<\/p>\n
The rupee is expected to open around Thursday’s 95.7850-per-dollar level. The \u200bcurrency traded in a narrow 20-paisa range in the previous session before settling at its weakest level of the day, extending its losing streak to a third session.<\/p>\n
All eyes are now on the Reserve Bank of India\u2019s policy decision, due at \u200c10:00 am IST. While most \u2060economists expect the RBI to keep rates on hold, views among currency traders are far more divided.<\/p>\n
About 80% of economists polled \u2060by Reuters expect the central bank to leave the policy rate unchanged, while traders see it closer to a coin toss.<\/p>\n
An immediate reaction is expected to the rate \u200bdecision, \u200bwith a hike likely to draw a \u200bbigger response than a status quo, \u200ca currency trader at a private sector bank said.<\/p>\n
More crucial, however, will be any measures to attract dollar inflows, without which the rupee\u2019s near-term outlook remains challenging, he added.<\/p>\n
There have been several reports in recent weeks about potential measures to boost dollar inflows. The latest indicates that India may scrap capital gains tax \u200con foreign portfolio investments in government securities, \u200ba move that could help attract such flows.<\/p>\n
Expectations \u200bof measures to boost dollar \u200binflows come against a backdrop of mounting external pressures. Economists \u200cwarn that persistently high oil prices could \u200bwiden the current \u200baccount deficit at a time when portfolio flows are expected to remain weak.<\/p>\n
Meanwhile, cues from Asia were largely negative for the rupee, with most \u200bregional currencies down on the \u200cday and risk appetite subdued. Markets remained cautious amid worries over \u200ba flare-up in Middle East tensions, with U.S.-Iran talks still in limbo.<\/p>\n
(Reporting \u200bby Nimesh Vora; Editing by Sonia Cheema)<\/p>\n","protected":false},"excerpt":{"rendered":"By Nimesh Vora MUMBAI, June 5 (Reuters) – The Indian rupee is expected to open broadly unchanged on…\n","protected":false},"author":2,"featured_media":477206,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,149045,221398,85,7529,46,221397],"class_list":["post-477205","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-currency-trader","tag-currency-traders","tag-il","tag-indian-rupee","tag-israel","tag-policy-outcome"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/477205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=477205"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/477205\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/477206"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=477205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=477205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=477205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}