The Indian rupee opened 16 paise stronger at 85.37 against the US dollar on Friday, in comparison to its previous close of 85.53 on Thursday snapping its three day decline. 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 trade in a range of 85.10 to 85.75.
The rupee has remained in range with daily flows dominating the direction. The opening on Friday was slightly stronger as market reacts to US jobless claims which has started to show some cracks, taking the US 10 year yield down, Bhansali added.
"Exporters need to hedge near 85.70 to 85.75. Importers need to wait for hedging purpose," he advised.
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Additionally, the US dollar softened on Friday as the dollar index fell to 99.42, while US 10 year bond softened to 4.4150%. The dollar index is likely to report its fifth consecutive month of loss as traders brace for further bouts of uncertainty around trade.
"We continue with the recommendation to sell dollars near to 85.70/75 whenever we get the level, while we buy dollars on cash basis," said Bhansali.
The Euro was firm at 1.13150, while the Great Britain Pound was at 1.3472 and Japanese Yen was at 143.89. Asian currencies were stronger with Chinese Yuan at 7.1874, Indonesian Rupiah at 16,295 and South Korean Won at 1,375.
Additionally, on Friday, crude fell with Brent crude falling to $63.04 per barrel, ahead of an OPEC+ meeting that will decide on the supply policy.
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