The rupee opened flat on Tuesday after closing stronger in the previous session, as strength from foreign inflows was offset by a recovery in the dollar overseas, according to forex analysts.
The local unit opened at 85.13 against the US dollar, hovering near the psychological mark of 85. On Monday, the rupee had closed 24 paise higher at 85.14, marking its fifth straight session of gains.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
“Questions over the US Federal Reserve's independence have raised concerns over the credibility of the dollar,” said Kunal Sodhani, vice president, global trading centre at Shinhan Bank India. He pegged support for the rupee at 84.90, with resistance seen at 85.50. “Tariff uncertainties still continue to prevail, and the dollar index remains under pressure,” he said.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The dollar index was down 0.16% at 98.11, while Brent crude gained 0.51% to $66.60 per barrel in early trade. Oil prices rose as investors covered short positions, even as demand concerns lingered due to recession fears and ongoing trade tensions. “Both oil benchmarks dropped 2% on Monday on signs of progress in the US-Iran nuclear talks, easing supply concerns,” said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
“Range for the rupee is expected between 85.00 and 85.50,” said Bhansali. He advised exporters to hold off on selling and recommended that importers hedge payables at around the 85.00 level.
“USDINR opened weaker at 85.22 after touching a high of 85.03 on Monday, which was nearly a month's high,” said Bhansali. “Inflows into both debt and equity helped the rupee yesterday. Some short covering on the dollar is expected today.”
Bhansali also pointed to a drop in domestic bond yields, with the 10-year government bond falling to 6.32%, around 20 basis points lower than levels seen during the last RBI rate cut. He expects the rupee to trade in the 85 to 85.50 range for the day, and suggests that importers hedge near-term exposures, while exporters may wait for better levels.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
