MUMBAI, Sept 24 (Reuters) - The Indian rupee's winning streak was poised to halt on Tuesday amid the usual dollar payments by importers, while forward premiums held at multi-month highs after dovish remarks by Federal Reserve officials.

The rupee was at 83.6250 to the U.S. dollar at 11:56 a.m. IST, down from 83.5525 in the previous session. The rupee had managed to rally by nearly 0.5% over the last six sessions, a pace that momentum indicators suggested may have been too quick.

The decline in the rupee from Monday's high of 83.43 is just due to the "normal" flows and "was expected," a currency trader at a bank said.

It "is just a part of the process of the market adjusting to a new level," while the near-term direction bias "remains very well" on the upside for the rupee, he said.

Amit Pabari, managing director at FX advisory firm CF Forex, concurred. Any upside moves on dollar/rupee should be seen a "prime opportunity for sellers to jump in", he said.

Meanwhile, the 1-year dollar/rupee forward premium held near to the highest level since April 2023 on bets of more Fed rate cuts.

CHINA STIMULUS

China's broad monetary stimulus and property market support measures were the main talking points in Asia on Tuesday. Chinese equities rallied, and the offshore Chinese yuan climbed to 7.0310 to the U.S. dollar.

A rally in the yuan should "obviously" support the rupee, a rates and currency proprietary trader at a bank said.

"However, it is not that straightforward. A China stimulus makes it more attractive for foreigners to invest in shares there at the cost of India and other Asian countries," he explained.

It was too premature to say what the exact fallout of China's stimulus on the rupee would be, he said.

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https://www.reuters.com/markets/currencies/rupee-halts-winning-streak-forward-premiums-hold-near-18-month-high-2024-09-24/