Rupee likely to rise on uncertain US economic outlook, inflows

By Nimesh Vora

MUMBAI (Reuters) - The Indian rupee is acceptable to unfastened higher connected Wednesday pursuing anemic U.S. user assurance information that heightened anxieties regarding the U.S. economical trajectory.

The resumption of equity flows should supply an further impetus to the rupee.

The 1-month non-deliverable guardant indicated that the rupee volition unfastened astatine 85.62 to 85.64 against the U.S. dollar compared with 85.7550 successful the erstwhile session.

The Indian currency snapped a nine-day winning tally connected Tuesday, during which it has rallied by 2%. A predominantly softer dollar, the instrumentality of overseas superior to Indian equities, and the liquidation of bearish rupee bets contributed to the rise, per bankers.

Foreign investors acquired much than $600 cardinal worthy of Indian equities connected Tuesday, resulting successful inflows exceeding $2 cardinal successful the past 4 trading days.

A currency trader astatine a Mumbai-based slope said Tuesday's terms enactment was an expected correction pursuing the currency's "super run-up".

The trader expects buying involvement connected USD/INR dips and a scope of 85.50 to 86 pending clarity connected U.S. tariffs.

Next Wednesday, U.S. President Donald Trump volition disclose the circumstantial details of the tariffs helium plans to implement.

WEAK US DATA

U.S. Treasury yields slipped connected Tuesday, pressured by anemic user assurance information and worries implicit the economical outlook amid the impending tariffs.

The U.S. Conference Board information showed that the user assurance scale fell to a four-year debased of 92.9, with households reporting the highest pessimism successful 12 years.

The information indicated "potential aboriginal softness successful user discretionary spending, which connected our estimates represents astir 20% of user expenditure," ANZ Bank said successful a note.

"Tariff anxiousness is continuing to play a relation successful the elevated level of worry."

KEY INDICATORS:

** One-month non-deliverable rupee guardant astatine 86.02; onshore one-month guardant premium astatine 31 paise

** Dollar scale dips to 104.18

** Brent crude futures up 0.5% astatine $73.4 per tube ** Ten-year U.S. enactment output astatine 4.33%** As per NSDL data, overseas investors bought a nett $723 cardinal worthy of Indian shares connected March 24

** NSDL information shows overseas investors bought a nett $15.7 cardinal worthy of Indian bonds connected March 25

(Reporting by Nimesh Vora; Editing by Mrigank Dhaniwala)