2012.06.04 05:13:31 MARKET TALK: USD/INR Likely To Open Higher; 55.20-56.20 Band Tipped

0313 GMT [Dow Jones] The USD/INR is likely to draw some buying interest amid poor risk sentiment across the region as poor economic data over the weekend and lingering concerns over the eurozone's financial troubles weigh, traders say. The pair may open around 55.70, from 55.54 in late Asia trade Friday, and may trade in a 55.20-56.20 band today. Expected weakness in local shares may keep any INR gains in check, but it may find support in comments from RBI deputy governor Subir Gokarn late Friday that the central bank is doing everything possible to curb volatility in the USD/INR. He noted that the RBI hadn't taken a decision on whether to carry out a sovereign bond issue abroad to boost the supply of USD, but "all options were open." Also, the central bank hadn't ruled out selling USD directly to state-owned oil importers. Foreign funds net sold a provisional INR6.65 billion worth of shares Friday. USD/INR 1-month NDFs are at 55.90/55.94. (khushita.vasant@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires June 03, 2012 23:13 ET (03:13 GMT)