India rupee to rise on drop in US yields, state poll outcome

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Key Points

MUMBAI, Dec 4 (Reuters) - The Indian rupee is likely to open stronger on Monday, aided by a drop in U.S. Treasury yields following comments from Federal Reserve Chair Jerome Powell and on the back of state election victories for India's ruling party...

Non-deliverable forwards indicate the rupee will open at around 83.23-83.24 to the U.S. dollar compared with its close at 83.2875 on Friday...

however dip-buying interest (on USD/INR) may emerge near 83.20," a foreign exchange trader at a private bank said.. Prime Minister Narendra Modi's Bharatiya Janata Party won the elections in three of the five Indian states that had recently gone to the polls...

The elections results, "are likely positive for equity inflows, and as such reduces some pressure for INR depreciation in the near-term," MUFG Bank said in a note on Monday.. U.S. Treasury yields dropped on Friday after comments from Fed Chair Jerome Powell signalled optimism that the central bank's current policy rate may be adequate to complete the job of combating inflation...

"Having come so far so quickly, the (Federal Open Market Committee) is moving forward carefully, as the risks of under- and over-tightening are becoming more balanced," Powell said...

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