The rupee reversed its early gains as dollar demand from oil importers weakened the Indian unit to 53.86 in intra-day trade.
The domestic unit opened slightly lower at 53.88 but quickly recovered to Wednesday’s close of 53.80 within the first 30 minutes of trade.
The focus will shift to global developments over the next 10 days.
China reported a slight improvement in its PMI data, which measures the factory activity in the country. China’s PMI improved to 50.2 in October from 49.8 in September. A figure above 50 indicates expansion.
G-20 meeting
Also, the currency markets will tune into developments in the G-20 meeting to be held in Mexico City later this week.
Ahead of the meeting, three international organisations said in a report that FDI is critical for developing countries like India, Brazil, South Africa and Mexico. They called the G-20 economies to revitalise the multilateral trading system.
US presidential election
The US presidential election is around the corner and that will also play a role in determining the international market mood. This might also have an impact on the Indian unit.
Call rates, G-Secs
The interbank call rates, which had closed at 8.15 per cent on Wednesday, were trading lower at 8.05 per cent in intra-day trade.
The 8.15 per cent government security (G-Sec), which matures in 2022, opened slightly lower at Rs 99.52 against Wednesday’s close of Rs 99.56.
Yields remained consistent at 8.21 per cent. At 1 pm local time, the G-Sec was trading at Rs 99.61 (yield: 8.20).
