Rupee seen opening slightly weaker as bearish bias continues on soft flows

The Indian rupee is expected to open slightly weaker and remain under pressure on Tuesday, weighed by subdued portfolio flows and increased dollar demand in the non-deliverable forwards market, which traders say reflects bearish positioning on the currency.

In the NDF market, the Indian rupee is trading at 90.10-90.15, after closing at 90.07 on Monday.

The rupee remains Asia’s weakest major currency this year, with its downward trend intensifying last week after breaching the 90-per-dollar level and touching a record low of 90.4225.

India’s equity benchmarks are likely to open on a subdued note on Tuesday, following their sharpest decline in over two months in the previous session, as uncertainty around a U.S. trade deal and caution ahead of the Federal Reserve’s rate decision continue to weigh on sentiment.

Gift Nifty futures were at 25,964.5 points, suggesting that the Nifty 50  is likely to open close to Monday’s closing level of 25,960.55.