The Indian rupee closed 7 paise stronger at 85.55 against the US dollar on Wednesday, in comparison to its previous close of 85.62 on Tuesday. This appreciation comes ahead of CPI data, to be released on Thursday and amid various global and domestic economic factors influencing the currency markets.
The domestic currency opened 11 paise stronger at 85.51 against the US dollar on Wednesday. However, intraday it strengthened 18 paise to 85.44 against dollar. Rupee "remained range-bound between 85.45–85.70," said Ritesh Bhanshali, director, Mecklai Financial Service Ltd. He expects the Rupee to face resistance at 85.80 and 86.10 levels and key support lies at 85.30 and 84.80.
Additionally, the US dollar held steady near 99, confined to a narrow range as markets await today's CPI release and monitor US-China trade talks.
In India, trade talks with the US made progress ahead of the June deadline, though disputes over agriculture and steel remain unresolved.
On Wednesday, crude fell with Brent crude down 0.39% to $66.61 as traders digested an initial agreement between the US and China. This comes after Brent rose above $66 on Tuesday.
In the last two months crude prices tumbled to a four-year low amid US President Donald Trump's tariff related announcements that triggered trade wars. While it may have recovered some of the losses, it still remains almost 9% lower this year as trade conflicts persist and OPEC+ has abandoned the earlier strategy of defending higher prices by curbing output.
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