Rupee likely to open largely unchanged as China Covid impact assessed
The Indian rupee is expected to open largely unchanged against the dollar on Thursday, while most Asian currencies eased as worries about a spike in Covid cases in China set in.
The rupee is seen opening between 82.80-82.85 in early trades, against its previous close of 82.8575 per dollar.
Investors have cautioned it would be hard to determine a direction amid the holiday season's thin-volume trades.
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The currency continues to track a muted dollar and is likely to consolidate in the current zone, although a pullback in crude prices could be slightly supportive, said a foreign exchange dealer.
The dollar index was little changed at 104.280, while Asian currencies and equities mostly declined.
Markets are likely "digesting the fact that the initial stages of China re-opening will necessarily entail outbreaks in a thus-far cocooned population," wrote Vishnu Varathan, head of economics and strategy, Mizuho Bank.
The speed at which the country has scrapped Covid rules has left its fragile health system overwhelmed, sparking concerns about the spread of the virus.
Following China's removal of its quarantine rule for inbound travellers beginning 8 Jan, countries such as the United States, Japan, and India said they would require Covid tests for travellers from China.
Meanwhile, oil prices slipped to $82.8 per barrel as the scale of the latest Covid outbreak in China hit demand recovery hopes.
