Mumbai: The rupee recovered from early lows and was trading flat on Thursday, with little direction from mixed regional currencies and flip-flopping domestic shares.
At 10:25am, the partially convertible rupee was at Rs50.31/32 per dollar, off an early low of Rs50.45 and little changed from its Wednesday’s close of Rs50.33/34.
“It is expected to be flattish, as even equities should be rangebound today. May be we can go down to 50.25 levels intraday, and don’t see it breaking 50.48 technically on the higher side,” said Madhusudan Somani, head of forex trading at Yes Bank.
Indian shares made an unsteady start as investor appetite for risk was hit by a bleak global growth forecast by the IMF and renewed concerns about the world banking sector.
The International Monetary Fund said the world economy has fallen into a severe recession. It cut its forecast for global growth and called for forceful action by policy setters to spur a recovery.
India’s central bank on Tuesday cut its key lending rate for the sixth time in 7 months and pushed commercial banks to follow suit to bolster growth, which has taken a bigger-than expected hit from the global downturn.
One-month offshore non-deliverable forwards were quoting at Rs50.48/58, weaker than the onshore spot rate.