Rupee Continues To Trade Volatile: Opens Weak Against US Dollar

The Indian Rupee opened 26 paise weaker at 85.54 against the US Dollar on Thursday, following its previous close at 85.28 a dollar on Wednesday, according to Bloomberg.

Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, suggested the range for the day is 85.00 to 85.75. He also advised exporters to hedge at levels of 85.40, 85.50, and 85.75, while importers may wait to hedge near 84.25 and 84.50.

Brent oil prices fell to $64.65 per barrel after Iran signaled openness to a nuclear deal with President Trump. Additionally, data from the American Petroleum Institute showed an unexpected increase in inventories, raising concerns about oversupply. Both Brent and WTI contracts declined, stalling a four-day rally. Despite Iran's openness to a deal, investors remained skeptical due to Trump's aggressive stance on applying maximum pressure on Iran, Bhansali said.

The dollar experienced volatility on Thursday amid a week marked by investor relief over the US-China tariff truce, which later gave way to caution due to uncertainties surrounding various trade deals, he said. The dollar index stood at 100.91, while the US 10-year Treasury yield rose to 4.5390%.

The South Korean Won was volatile overnight following news of discussions between South Korean and US officials regarding the Won exchange rate.

Following an overnight loss in the Dow Jones, the Nikkei slipped by 1.06% this morning, while the Hang Seng rose by 0.02% and China saw a slight increase of 0.18%.

The Gift Nifty indicated a lower opening. The market is awaiting data from the US on retail sales and the Producer Price Index, as well as data from the UK today. Federal Reserve Chair Jerome Powell's comments on Thursday will be closely watched for insights into the Central Bank's plans for monetary policy easing.

Indian trade data is anticipated to be released today, following yesterday's inflation data, which showed lower retail and wholesale inflation due to falling food prices, Bhansali added.