The Indian rupee opened 17 paise stronger at 85.05 against the US dollar on Monday, recovering from its previous close of 85.22 on Friday. This slight appreciation comes amid various global and domestic economic factors influencing the currency markets.
Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, expects the currency to trade in the range of 84.90 and 85.60. "Exporters may wait to hedge, while importers may partly hedge at 85 levels," he advised.
The Euro rose to 1.1412, while the dollar index fell below 99 to 98.75 after US President Donald Trump extended the deadline for a trade deal with the European union to July 9. The British Pound also rose to 1.3586 while the yen rose to 142.28.
Brent oil prices rose to $64.26 in early Asian trade, after Trump's extension eased concerns about US tariffs on the block that could hurt the global economy.
While the Indian rupee took a U-turn on Monday, the outflows of MSCI on Tuesday could be a trigger for rupee to weaken a bit from tomorrow, said Bhansali.
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