The Indian rupee opened 28 paise weaker at 85.62 against the US dollar on Wednesday, in comparison to its previous close of 85.33 on Tuesday. This slight depreciation comes amid various global and domestic economic factors influencing the currency markets.
Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, provided insights into the day's trading range and hedging strategies. According to him, the rupee is expected to be in a range of 85 to 85.60.
"Exporters need to sell near to 85.50/60, thus hedging their receivables. Importers need to wait for a fall below 85.00 to buy some dollars for hedging purpose in the near term," he advised.
The Indian rupee fell to 85.47 on Tuesday, before regaining composure and closing at 85.33, as exporters lined up orders to sell their receivables which are within the costing. Rupee weakened yesterday on account of the outward flow seen by Zomato parent Eternal Ltd., amounting to $900 million, said Bhansali.
The Euro was down at 1.1314, while the dollar index rose to 99.74 amid improved consumer confidence. Asian currencies were weaker with Chinese Yuan at 7.1968, Indonesian Rupiah at 16,287 and South Korean Won at 1,375.
Additionally, on Wednesday, crude rose with Brent crude—the global benchmark for crude oil—rising 0.76% to $64.58 per barrel, ahead of an OPEC+ meeting that will decide on the supply policy. Markets are also considering the prospect of additional US sanctions on Russia. This also follows US ban on Chevron from exporting Venezuela crude under a new authorisation on its assets there, raising the prospects of a tighter supply.
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