Rupee Opens Lower Against US Dollar For Second Day Straight
Indian rupee has weakened nearly 40 paise in two days.
The Indian rupee opened lower against the US dollar on Thursday, marking its second day of decline. On Wednesday, too, the currency had opened lower.
It opened 18 paise weaker at 85.60 against the US dollar on Thursday, following its previous close at 85.42 a dollar on Wednesday, according to Bloomberg. The domestic currency has weakened nearly 40 paise in two days.
Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, suggested that exporters might wait to sell, while importers could hedge payables around the 85.00 level.
Brent oil prices increased early on Thursday after a nearly 2% drop in the previous session. Investors are weighing a potential OPEC+ output increase against conflicting tariff signals from the White House and ongoing Iran-US talks. Brent rose to $66.13 a barrel after the overnight decline, he noted.
Mixed messages from the Trump administration led to a second day of market gains, with investors speculating that Trump might seek to ease tensions, given the impact on equities, bonds, and global confidence in the US economy. The treasury secretary stated that the US won't pursue specific exchange-rate targets in talks with Japan, affecting the yen's value, Bhansali said.
The Indian rupee, which fell due to the rise in the dollar index and recent Kashmir attacks, was expected to open slightly weaker as per Bhansali and will trade in a range of 85.25 to 85.75. Exporters are likely to hedge currency receivables, while importers have already hedged near-term positions. The RBI's actions and geopolitical tensions in the sub-continent will be closely watched, Bhansali said.
