Rupee Opens Stronger Against US Dollar

The Indian rupee opened stronger against the US Dollar on Monday.

It opened 15 paise stronger at 85.30, following its previous close at 85.45 on Friday.

"RBI has not allowed rupee appreciation beyond 85.00 levels while the Indo-Pakistan tensions have kept rupee on the edge with uncertainty prevailing on strikes by India at Pakistan Terrorist outlets. The range for today is between 85.10 and 85.60 with upticks on dollar to be sold and importers to hedge near 85.00 levels for the near term," said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.

The dollar index was trading higher by 0.18% at 99.65, as of 9:11 a.m. Positive trade talks between US and Asian countries aided the US currency.

Kunal Sodhani, vice president at the Global Trading Centre, Shinhan Bank stated in an X post, "Fed Governor Christopher Waller said in a Bloomberg interview that he would support rate cuts if tariffs start weighing on the job market. Moreover, traders are still pricing in the possibility that the Fed will lower borrowing costs at least three times by the end of this year."

"Cleveland Fed President Beth Hammack stated that a rate cut as soon as June could be possible if clear and convincing data on economic direction is obtained."