MUMBAI, July 23 (Reuters) – The Indian rupee marginally rose on Tuesday, tracking a rise in most of its Asian peers and as investors awaited the presentation of India’s budget later in the day.
The rupee was at 83.6250 against the U.S. dollar as of 09:30 a.m. IST, up slightly from its close of 83.6575 in the previous session.
Asian currencies were mostly stronger, with the Korean won up 0.3% and leading gains. The dollar index was little changed at 104.2.
Investors will keep their focus on Indian Prime Minister Narendra Modi’s first post-election budget, due at 11:00 a.m. IST.
The government’s fiscal deficit target and gross market borrowing estimates for financial year will be among the key numbers investors pay close attention to.
Broadly, the rupee is “anticipated to stabilise within the range of 83.40-83.70,” Amit Pabari, managing director at FX advisory firm CR Forex said.
Meanwhile, dollar-rupee forward premiums slipped, with the 1-year implied yield down 1 basis point at 1.74%.
Forward premiums are likely decline by another 2-4 basis points if the government lowers its gross borrowing estimate and fiscal deficit target, a foreign exchange trader at a state-run bank said.
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Reporting by Jaspreet Kalra; Editing by Janane Venkatraman
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