Rupee Under Pressure As It Opens Flat Against US Dollar
The trading range for rupee is expected to be between 85.25 and 85.75.
The Indian Rupee opened flat at 85.64 against the US Dollar on Wednesday, maintaining stability amid a backdrop of mixed global economic signals.
"The range for the day is expected to be between 85.25 and 85.75. Exporters can hedge at 85.70-75, while importers may wait to hedge near 84.25-50," said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
Asian equities showed a slight upward trend as risk appetite was tempered by higher bond yields. Investors remained cautious about the fiscal outlook of major developed economies and the lack of progress on new trade deals. Crude oil prices rose by more than a dollar, following a CNN report that Israel was preparing to attack Iranian nuclear facilities, raising supply concerns in the Middle East. Brent oil was priced at $66.57 per barrel, Bhansali noted.
The Japanese bond market drew attention after yields on super long tenors surged to record highs, due to concerns about demand following a weak auction, he said. Japan's trade balance turned into a deficit in April, impacted by tariffs and a stronger Yen.
Chinese stocks rose by 0.53%, Hang Seng by 0.49%, while Nikkei saw a slight decline of 0.11%. Gift Nifty was down by 8 points in pre-opening trade.
Yesterday, the Rupee fell to 85.63 after hitting a low of 85.66 as oil companies bought dollars to refill strategic reserves amid geopolitical turmoil. Foreign portfolio investors were net sellers to the tune of Rs 10,000 crore, likely due to the Airtel Singtel deal, Bhansali said.
