Elevated demand to buy dollars at the central bank’s daily reference rate is hurting the local unit, the second trader said. The reference rate was quoting at around 0.50 paisa premium on Friday, indicating elevated dollar demand.
The RBI reference rate is the daily benchmark used to settle contracts and often attracts concentrated dollar buying or selling.
“Exporters to sell the upticks (on USD/INR) on cash/spot basis while importers to buy dollars on all dips would be suggested action for the day,” said Anil Bhansali, head of treasury at Finrex Treasury Advisors.
Global markets await a crucial US jobs report and a Supreme Court ruling on the legality of sweeping global tariffs.
