USD/INR Likely To Open Lower; 53.15 Support

The USD/INR is likely to open lower, with the local currency drawing comfort from central bank deputy governor Subir Gokarn's comments that economic reforms, including foreign direct investment into retail will help boost rupee and temper price pressures, says a dealer with a privately-run bank. The pair may open at around 53.25-53.30 vs 53.36 late Tuesday in Asia. Still, the rupee is unlikely to rise sharply; "globally, euro concerns and Japan-China geopolitical crisis will weigh on risk sentiment," he says. He tips the pair to trade in a 53.15-53.50 range in the session. Foreign funds were net buyers of INR58.46 billion ($1.1 billion) worth of local shares on Tuesday. One-month NDF are trading at 53.63/53.66.