Rupee Erases One-Day Loss Against US Dollar At Open

The Indian rupee opened 10 paise stronger against the US dollar on Wednesday at 85.16 a dollar, following its previous close at 85.26 on Tuesday.

The currency snapped its two-day gains on Tuesday amid pressure on Brent crude and an easing dollar index. On Wednesday, it has revived its gains against the greenback.

The trade range for the day is 84.90/85.60, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. He advised exporters to "wait to sell" and importers to "hedge payables at around 85.00 levels whenever they get it".

"The range is wide at 84.90 to 85.60, with upticks to the pair getting sold off before tomorrow's holiday."

Brent Crude extended its decline and was trading 0.63% weaker at 62.64 as of 9:10 a.m. on Wednesday, owing to the ongoing global trade tensions. Brent had slumped 14% in the month of April, which is considered to be the heaviest decline since the contract began trading in 1988, Bloomberg stated.

"Brent oil prices fell to $62.80 per barrel as President Trump's erratic trade policies raised concerns of a weakening global economic growth and lower fuel demand. The tariffs on US imports have made it probable that global economy could skip into a recession by the end of this year as per Reuters poll," said Bhansali.

Meanwhile, the US Dollar index strengthened by 0.11% and was trading in the green at 99.13 by 9:10 a.m. on Wednesday.

Trump signed an order on Tuesday to soften the blow of his auto tariffs with a mix of credits and relief from other levies on materials. The Trump team also routed its first deal with a foreign trading partner, while US Treasury Secretary Bessent said the administration is making progress on trade negotiations, noting that deals are forthcoming for India and South Korea, Bhansali noted.

"The developments helped ease some tensions as investors and companies worried about the economic fall out of the tariffs, with indications the duties will weigh on growth and could drive up inflation and unemployment," he said.