Rupee Weakens Against Dollar At Open

The Indian rupee opened 5 paise weaker at 85.14 against the US dollar on Tuesday, recovering from its previous close of 85.09 on Monday. This slight depreciation comes amid various global and domestic economic factors influenced the currency markets.

Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, expects rupee to trade in the range of 84.75 to 85.50. He also anticipates Zomato to see outflows of $900 million due to the MSCI rebalancing. "Exporters may wait to hedge, while importers may partly hedge at 85 levels," he advised.

The Euro was at 1,1402, while the dollar index fell to 98.85 as investor concerns over a sweeping tax and spending bill and its implications for the US debt profile continued to undermine sentiments towards US assets. The GBP also rose to 1.3577 while the yen rose to 142.39.

Additionally, Brent oil prices fell to $63.98 in early Asian trade as market participants weighed the possibility of an OPEC+ decision to further increase its crude oil output at a meeting later this week.

While the Indian rupee regained to higher than 85 levels on Monday, it was sold off at 84.7750 and ended near 85.0850 in a volatile trading session despite it being a US holiday and had lower volumes.

While Gift Nifty indicated for a lower open, Nikkei was down 0.22% early in the morning while Hang Seng China was down 0.14% and 0.20%, respectively.