Rupee Opens Weaker Against US Dollar
The Indian rupee continued to weaken against the US dollar on rising uncertainty in the global markets.
Rupee opened weaker against the greenback as the dollar index extended gains on rising uncertainty over global trade and US economy. The rupee opened 6 paise lower at 87.26 a dollar on Thursday.
The Indian unit settled at 87.20 a dollar on Tuesday. It slumped 55 paise against the US dollar in Tuesday's session, recording the worst intraday fall since Feb. 3.
"USDINR is expected to remain at elevated levels, with strong support at 87.00 and resistance at 87.50-87.60, as prevailing global challenges outweigh the existing advantages," said Amit Pabari, managing director, CR Forex Advisors.
India's financial markets were closed Wednesday for the observance of Shivratri.
The dollar index extended gains to a second day as concerns about the US economy and tariff outlook weighed on the risk-appetite. The index was trading 0.19% higher at 106.62 as of 8:35 a.m., according to Bloomberg terminal.
US New Home Sales fell to 0.657 million units, missing the 0.68 million units estimated for January, and lower compared to the 0.698 million units a month earlier, according to Kunal Sodhani, vice president global trading centre, Shinhan Bank.
On the other hand, US President Donald Trump announced that it will impose 25% tariff on European Union. Previously announced tariff on Mexico and Canada will be effective from April 2, Bloomberg reported.
Oil future retreated from two-month lows in Asia session Thursday. It hit the lowest level since Dec. 23, 2024, as demand outlook for the commodity turned bleak on tariff threats from the US. Moreover, possible production delays from the Organization of Petroleum Exporting Countries and allies also weighed.
Brent future was trading 0.33% higher at $72.77 a barrel as of 8:35 a.m.
