Rupee has a 3rd good day, rises 9 paise to 92.98

Mumbai: The Indian rupee climbed Tuesday, advancing for three days on the trot, to close at 92.98/$, reflecting the anticipated impact of unwinding of lenders’ positions in the overseas forwards markets ahead of a regulatory deadline that aimed to provide support for a unit that lost the most in 14 years last fiscal. The rupee advanced 9 paise from its previous close of 93.07/$. It traded Tuesday in a narrow range as dealers remained on edge about the US deadline to reach a deal with Iran.

The currency traded between 93.07/$ and 92.86/$ on Tuesday as dollar sales from unwinding of arbitrage positions were met with demand for the greenback from importers and oil companies.

“Central bank measures have helped stabilise volatility, but the underlying bias remains sensitive to global cues,” said Jateen Trivedi, VP research analyst, currency at LKP Securities.

The RBI measures – in two tranches – have come over the past 10 days curbing open postions for banks to $100 million and barring corporates from taking positions in the offshore market.

“The near-term range for the rupee is seen between 92.50/$ and 93.75/$, with RBI monetary policy this week acting as a key directional trigger,” Trivedi said.