Rupee Declines Against The US Dollar At Open
Rupee had opened three paise weaker to reach 84.28 against the dollar at the open on Tuesday.
The Indian Rupee opened 18 paise weaker at 84.62 against the US Dollar on Wednesday, amid active cross border conflict between India and Pakistan. It had weakened at close on Tuesday by 19 paise at 84.44 against the US dollar, as per Bloomberg data.
The currency had opened three paise weaker to reach 84.28 against the dollar at the open on Tuesday. The currency had strengthened 11 paise against the US dollar to open at 84.25 on Monday and extended its gain at close as well.
"Fed commentary important to watch today for future rates trajectory. For USDINR, 84.25 acts as a support while 84.90 a resistance, followed by 85.20 levels," as per Kunal Sodhani, vice president at Global Trading Centre, FX & Rates Treasury, Shinhan Bank India.
"Exporters may wait to sell. Importers may hedge payables at around 84.00 levels when they get it," advised Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, Anil Kumar Bhansali. "The military strikes against terrorist camps in Pak and POK brings focus on the escalation of conflict on to rupee," added Bhansali.
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"Fed is expected to maintain current rates, investors will closely monitor comments from policymakers, especially Fed Chair Jerome Powell, for any indications that a shift towards a rate-cutting cycle might occur sooner than anticipated," stated Sodhani.
The US Dollar Index was trading 0.27% higher at 99.30. "The US Dollar Index remains capped below 100.00, still stuck in a wait-and-see range," added the Shinhan Bank VP.
Brent crude rates were stable at 62.55, up 0.41%. "Brent oil prices rose in the morning Asian trade on Wednesday buoyed chiefly by the US signalling that early stage trade talks with China will take place this week, while bets on tighter US supplies also supported the market. Brent oil was at $62.48 per barrel. Prices extended gains into a second consecutive session, after rebounding from a four-year low on Tuesday, with an element of bargain buying also into play," Bhansali said.
