Rupee to take support from dollar's decline, likely inflows
By Nimesh Vora
MUMBAI, Sept 11 (Reuters) -The Indian rupee is likely to open slightly higher on Wednesday, helped by a decline in the dollar amid focus on the U.S. presidential debate and inflation data.
The 1-month non-deliverable forward indicated the rupee INR=IN will open at 83.96 to the U.S. dollar compared with 83.9750 in the previous session.
The rupee should manage "a bit of" an uptick with the dollar on the defensive and the possible inflows related to the Bajaj Housing Finance initial public offer, a currency trader at a bank said.
"84 will remain out of reach and dips (on the dollar/rupee) will have sufficient buyers."
The dollar index =USD dipped 0.2% to below 101.50 while Asian currencies advanced. The focus was on the highly anticipated debate between Vice President Kamala Harris and Republican presidential candidate Donald Trump, which concluded a few minutes ago.
Investors reckon a Trump win in November would push the dollar higher.
"Presidential debates do have a history of moving polling by a couple of points," Chris Weston, head research at broker Pepperstone said in a note.
We will have "wait to see how the relative performances impact the upcoming polls," he said.
Meanwhile, U.S. inflation data due later in the day will provide cues on the pace at which the Federal Reserve is likely to cut interest rates.
Odds of a 50-basis-point rate cut next week have slipped following a U.S. jobs report, which while below expectations was not considered weak enough for the Fed to be aggressive on slashing borrowing costs.
Headline U.S. consumer price index is forecast to fall to 2.6% in August from 2.9%.
"Data in line with these estimates will indicate to the FOMC that inflation pressures have sustainably cooled," ANZ Bank said in a note.
KEY INDICATORS:
** One-month non-deliverable rupee INRNDFOR= forward at 84.05; onshore one-month forward premium at 9.25 paise
** Dollar index =USD down at 101.48
** Brent crude futures LCOc1 up 0.7% at $69.7 per barrel
** Ten-year U.S. note yield at 3.63%
** As per NSDL data, foreign investors bought a net $135.1 mln worth of Indian shares on Sept. 9
** NSDL data shows foreign investors bought a net $123.2 mln worth of Indian bonds on Sept. 9
Reporting by Nimesh Vora; Editing by Mrigank Dhaniwala
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