Indian rupee seen weak against US dollar tracking Asian markets; RBI intervention watched

Written by Reuters | Updated: May 22 2014, 14:40pm hrs
Indian rupee may open weak against US dollar, around 58.55 versus its close of 58.7750/7850 on Wednesday, tracking gains in Asian markets after minutes from the Federal Reserve's latest policy meeting backed bets of a slow withdrawal of US stimulus.

A strong session on Wall Street led Asian shares up on Thursday, after minutes of the US Federal Reserve's last meeting reassured investors that policy makers will continue to support the world's biggest economy.

Most Asian currencies were up against the US dollar. See EMRG/FRX for a snapshot.

Traders said sharper gains in the rupee may be unlikely due to Reserve Bank of India's dollar buying during moments of rupee strength.

The pair was trading at 58.54/56 in the spot NDF market in Singapore.

NSE index futures traded on the Singapore Exchange rise 0.43 percent, while the MSCI-Asia Pacific excluding Japan index up 1.05 percent.

The index of the dollar against six major currencies up 0.04 percent.

The USD/INR pair is seen moving in a 58.40 to 58.90 range during the session.