Rupee Opens Weaker Against US Dollar Amid Market Uncertainty
The range for the day is expected to be between 86.25 and 86.75.
The Indian rupee opened 6 paise weaker against the US dollar on Thursday, trading at 86.53 compared to its previous close of 86.47 on Wednesday. The currency's decline comes amid ongoing market uncertainty and geopolitical tensions.
Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, provided insights on the day's trading range and strategic advice for exporters and importers. "The range for the day is expected to be between 86.25 and 86.75. Exporters should consider hedging near 86.60/75, while importers may wait for better hedging opportunities," Bhansali advised.
Asian stock markets edged lower on Thursday, with safe havens such as gold and the yen gaining attention as investors remained on edge over the possibility of the US entering the conflict between Israel and Iran. US President Donald Trump stated, "he may do it or he may not do it", keeping the world guessing about his intentions.
The Nikkei sank 0.75%, the Hang Seng was down 0.97%, and China's markets fell 0.33%. Brent oil remained stable at $76.25 per barrel, while USD/JPY was at 145.14. Gold rose slightly to $3375.44 per ounce. The euro fell to 1.1453, and the pound to 1.3393. "Market participants remain edgy and uncertain as speculation remains rife about Trump's potential intervention in the war against Iran," Bhansali noted.
The Federal Reserve kept interest rates on hold despite Trump's demand for a 250 basis point cut. The signals from the Fed were mixed, as they retained projections for two quarter-point rate cuts this year. Fed Chair Jerome Powell indicated that he expects meaningful inflation ahead due to Trump's aggressive trade tariffs. "It was a careful tread by the Fed, leaving markets anxious about tariff risks," Bhansali explained.
The Chinese yuan was slightly lower at 7.1944, the Indonesian rupiah at 16,364, and the South Korean won at 1,384—all weaker than the previous day. The dollar index was higher at 99.09, while the US 10-year Treasury yield remained stable at 4.3960%, Bhansali said.
