Rupee Sees Sharp Uptick, Opens Stronger Against US Dollar

The Indian rupee strengthened at open on Monday following a volatile week after Trump's 25% tariff announcement.

The local currency opened 32 paise stronger at 87.22 against the US Dollar on Monday compared to its closing at 87.54 a dollar on Friday.

Range for the day is expected to be between 87.00 and 87.50, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP

He also advised Exporters to hedge their exports, and Importers are advised to wait for hedging and buy for cash at the day's lowest level.

Brent oil prices fell to $ 69.54 per barrel as OPEC+ agreed for a production hike in September, while concerns over a cooling US economy and trade tariffs also weighed, Bhansali noted.

"The US dollar steadied marginally higher after falling on Friday after a softer NFPR. The index was at 98.80 while the US 19-year fell to 4.25% in Asia trading," Bhansali said.

He further added that, "The fall in dollar index and rise in Asian currencies has prompted the Indian rupee to open higher. Exporters are expected to sell the upticks while importers may buy to serve the cash dollars while waiting for hedging."

On Friday, the local currency ended 1.16% weaker for the week, the fourth consecutive weekly loss.