MUMBAI, Sept 8 (Reuters) – The Indian rupee trimmed early gains against the U.S. currency on Thursday, weighed down by dollar demand from importers and oil companies.
The rupee was cited at 79.81 per U.S. dollar, starting around 0458 GMT, contrasted and 79.90 in the past meeting.
The nearby cash had opened more grounded at 79.68, upheld by a fall in oil costs and recovery in most Asian monetary standards.
“Importers are taking advantage of the dip (in USD/INR pair), and there has been persistent demand from oil refiners,” said Anil Bhansali.
Mumbai-based Mecklai Financial advises importers to hedge whenever the net hedge rate (spot +forwards) is below 80.
At a spot rate near 79.70, importers can buy forward hedges below the 80 level up to October.
Brent crude futures tumbled over 5% on Wednesday to their lowest in more than seven months.
Hurt by concerns global economic outlook, Brent has fallen below $90 a barrel from $110 at the end of July.
Asian currencies recovered, helped by a pullback in the dollar index.
The dollar gauge dropped to 109.75, weighed down by a fall in Treasury yields and improved risk appetite.
It had reached a multi-year high of 110.57 in intraday trade on Wednesday.
Market participants across the globe are awaiting a European Central Bank rate decision later in the day and the U.S. Federal Reserve Chair Jerome Powell’s comments at a Cato Institute conference.
The ECB expected to raise rates by 50 or 75 basis points to tame inflation.