INR stays range bound; Dollar weakness could aid upside
The Indian rupee is staying in a tight range in opening trades on Thursday even as dollar sentiments stay damp amid expectations of a Federal rate cut. Rising optimism about an interest rate cut by the Federal Reserve in December is likely to trigger another round of buying in local equities, although uncertainty around a potential U.S.-Indian trade deal could limit market's upside. INR opened at Rs 89.19 per dollar but edged down to a low of 89.24 so far during the day. Yesterday, rupee fell marginally to close at 89.23 against the US dollar in a range-bound trade. Indian shares rallied on Wednesday, with buying seen across the board as a slew of weak economic data from the United States helped reinforce bets that the Federal Reserve will cut interest rates in December. The benchmark BSE Sensex jumped 1,022.50 points, or 1.21 percent, to 85,609.51 amid broad-based buying. The broader NSE Nifty index surged 320.50 points, or 1.24 percent, to 26,205.30.
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