Rupee Opens Weaker Against US Dollar As FPI Selling Continues

The Indian rupee opened weaker on Tuesday.

The local currency weakened by 5 paise to open at Rs 86.93 against the greenback, according to Bloomberg. It had closed at Rs 86.88 on Monday.

Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP, expects the Indian rupee to range at 86.70 to 87.10 for the day with dollars buying starting again as FPIs continue to sell equities and RBI support tapering off slowly. He said that one needs to watch whether the 87.00 mark is breached or not.

"For USDINR, 86.70 acts as a support while 87.00 acts as immediate resistance followed by 87.20 levels," according to Kunal Sodhani from FX Hub.

Brent oil prices paused in early Asian trade with prices being quoted at $75.11 following a drone attack on oil pipeline pumping station in Russia that reduced flows from Kazakhstan. Weak fundamentals also kept prices at the lower end while BMI analysts say that they respect Brent prices averaging $76 a barrel in 2025 which is down 5% from 2024 average.

OPEC till date has not announced any delay in monthly supplies beginning April.

US Dollar Index stood at 106.8960 and was 0.30% up. While Brent crude oil was at $75.42 and was up 0.27%.

Traders were weighing tariff worries and the path to US rate cuts, while yen held on to its gains as strong data bolstered odds of BOJ raising rates in its meeting in April, according to Bhansali.

Investors will focus on Wednesday's release of Fed meeting minutes to gauge how policymakers have sought to weigh the risk of broader tariffs in the wake of President Trump's trade policies.

Trade policy uncertainty is at a record high and given that labour market is solid, there is no need to cut rates imminently. An extended pause during the first half seems justified as it gives Fed time to assess impact of trade measures on inflation, he added.