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Rupee set to open largely flat against the US dollar
The 1-month non-deliverable forward (NDF) suggests the Indian rupee will open largely unchanged against the US dollar. The NDF reference follows the rupee’s Friday close at 88.7425 per dollar.
What the 1-month NDF means
The 1-month NDF is a short-term forward contract that gives a view of where traders expect the currency to trade when domestic onshore markets are closed. When it signals a flat open, it generally means there was little overnight pressure on the currency and markets expect limited immediate movement.
Why this matters to markets
- Traders: Use the NDF to gauge early session direction and set orders before domestic trading begins.
- Importers and exporters: Watch forwards for hedging and cash-flow planning.
- Investors: See the NDF as a quick read on sentiment versus the US dollar.
Factors to watch next
- Global dollar moves and US economic data.
- Domestic macro updates, including inflation and foreign flows.
- Central bank comments or policy moves that could change short-term expectations.
For now, the NDF’s flat signal points to a steady start for the rupee, but markets can shift quickly as new data or events unfold.