Rupee Opens Weaker Against US Dollar
The Indian unit opened 4 paise lower at 87.37 against the greenback.
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The rupee opened weaker against the US Dollar on Tuesday as traders remained cautious on concerns over tariff outlook. The Indian unit opened 4 paise lower at 87.37 against the greenback.
"US President Donald Trump’s policies are expected to slow down the economic growth. Traders eye Wednesday’s US CPI data for fresh market direction," said Kunal Sodhani, vice president, global trading centre, Shinhan Bank.
The rupee settled at 87.33 against the dollar on Monday, marking the lowest close since March 4.
"The Reserve Bank of India sell positions in non-deliverable forwards are maturing and as they are not being rolled over, it pushes offshore points higher and the pressure gets transmitted onshore. The rupee is likely to open around 87.34 and trade a 87.20-87.60 range with weakening bias," said Abhishek Goenka, founder and CEO, India Forex & Asset Management Pvt. Ltd. (IFA Global).
The dollar index declined in Asia session as market participants became wary of the potential slowdown in the US economy due to tariff impositions. Further, Reuters reported that the Japanese yen hit a five-month peak, which weighed on the dollar index.
The index was trading 0.12% down at 103.77 as of 8:52 a.m., according to data on Bloomberg terminal.
Crude oil prices continued their downward trajectory, which may provide relief to the Indian currency. In less than a month US will impose tariff on Canada, China, and Mexico, which will impact the demand outlook for the commodity.
The brent crude was trading 0.03% higher at $69.30 a barrel as of 8:54 a.m.
