The rupee snapped a three-day winning streak against the US dollar on Thursday, as investors wait for India's trade data. The rupee declined 27 paise to close at 85.55 against US Dollar.
India's Ministry of Commerce will release trade data for April at 5:15 p.m. April's trade data will likely be interesting, given it may capture some impact of the ongoing trade tariff-related impacts. In March, trade deficit widened to $21.54 billion in March, from $14.05 billion in February.
The Indian currency settled at 85.28 a dollar on Wednesday, according to Bloomberg. The rupee opened 26 paise weaker at 85.54 against the US Dollar on Thursday.
There's a persistent dollar demand in the foreign exchange markets because of foreign fund outflows from domestic financial markets, Reuters reported. Moreover, state-run banks also bought the greenback for immediate payments.
The dollar index continued to trade losses in Europe session, as pound sterling and euro gained. The index was trading 0.24% down at 100.80 as of 3:41 p.m.
Oil futures declined over 4% as US President Donald Trump said there's progress towards making a deal with Iran on their nuclear program, as reported by Bloomberg. Earlier, NBC reported that Iran is ready to sign an agreement with a certain condition, which may mean they are willing to forego nuclear weapon. Brent July future was trading 3.87% down at $63.53 a barrel as of 3:42 p.m.
"The rupee is expected to trade in a range of 85.20-85.85. Exporters are advised to hedge above 85.70 levels, while importers can consider hedging below 85.30 levels," said Ritesh Bhansali, director, Mecklai Financial Services Pvt.
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