Recent negative developments in Indian banking sector has put pressure on the rupee. The USD-INR is expected to trade in a range of 64.75-65.05 for the day, says Mohan Shenoi of Kotak Mahindra Bank.
The Indian rupee declined in the early trade on Thursday. It has opened lower by 29 paise at 65.05 per dollar versus 64.76 Wednesday.
Mohan Shenoi of Kotak Mahindra Bank said, "US FOMC minutes caused market volatility with US treasury yields touching a new high, US stock markets reversing early gains and dollar strengthening further."
"Recent negative developments in Indian banking sector has put pressure on the rupee. The USD-INR is expected to trade in a range of 64.75-65.05 for the day."
"RBI MPC minutes for February highlighted upside risk to inflation due to rising crude prices, MSP increases, fiscal slippage and Pay Commission implementation."
"The G-Sec market is expected to continue to be bearish with low demand and falling trading volumes. The 10-year benchmark bond yield is expected to trade in a range of 7.74-7.79 percent for the day," he added.
The US dollar wobbled last night after minutes from the Federal Reserve's policy meeting pointed to more rate hikes in months to come.
The dollar index, dropped about 0.20 percent after the release of the minutes, before regaining much of its losses.
