The Indian rupee hit a fresh record low after opening weaker on Wednesday as global funds continued to sell the currency amid global tensions.
The currency weakened to a record low of 87.41 as the rupee depreciated by 33 paise during the day. The currency opened at Rs 87.12 against the greenback, according to Bloomberg.
Rupee made a new low despite a fall in the dollar index and appreciation in Asian currencies as importers, oil companies and FPIs continue to buy dollars to fund their outflows, according to Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP.
"Trump’s decision to delay tariffs on Canada and Mexico has resulted in a decline in USD’s risk premium. China has retaliated with tariffs on the US, which would take place from Feb. 10. US JOLTS Job Openings for December point to further job cooling in opening. For Rupee, 86.90 acts as a support while 87.29 a resistance," said Kunal Sodhani from FX Hub.
US Dollar Index stood at 107.8520 and was 1.10% down. While the Brent Crude Oil was at $75.85 and was 0.46 down%.
The US JOLTS Job Openings for December faced a bigger decrease to 7.6 million openings, from the 8 million expected. Which is down from 8.098 million in November. In addition to these cues, the geopolitical headlines and the US data, two Federal Reserve speakers, Atlanta Fed President Raphael Bostic and San Francisco Fed President Mary Daly, will speak and might leave comments for markets to consider.
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