The Indian rupee opened 9 paise stronger at 85.43 against the US dollar on Thursday, in comparison to its previous close of 85.52 on Wednesday. This appreciation 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 trade in a range of 85.25 to 85.75.
Rupee opened higher "as dollar index fell yesterday and was lower today though Asian currencies were still range bound," said Bhansali.
He advised exporters need to hedge near 85.95 and importers to wait for hedging purposes.
Additionally, the US dollar weakened on Thursday on further signs that US President Donald Trump may adopt a softer stance in tariff negotiations and heightened expectations of Fed Reserve rate cuts after a softer CPI inflation data yesterday. The euro was at 1.1513, pound was lower at 1.3577, while the Japanese Yen rose to 144.04. Among Asian currencies, the Chinese Yuan fell 7.1916, the Indonesian Rupiah was at 16,247 and the South Korean Won was at 1,370.
On Thursday, crude extended gains with Brent crude—the global benchmark for crude oil—rising 0.24% to $70.01, on rising tensions in the Middle East. This comes after crude rose over 5% on Wednesday.
US has ordered some of its staff to depart from the embassy in Baghdad after Iran threatened to attack US bases if talks over its nuclear program fall through.
However, the Brent crude had slipped below $59 in May, the lowest level since February 2021. In the last three months, crude prices have tumbled to a four-year low, amid Trump's tariff wars.
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