Rupee Closes 12 Paise Weaker Against US Dollar

The Indian rupee closed weaker against the US dollar on Monday, resuming volatility after the currency showed signs of recovery at the start of trading session.

The local currency closed 12 paise weaker at 87.66 against the greenback compared to previous close at 87.54 a dollar on Friday.

This follows a strong start, as the currency opened 32 paise stronger at 87.22 against the dollar. Rupee traded in the range of 87.00 and 87.50 for the day.

Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP advised exporters to hedge their exports, and importers were advised to wait for hedging and buy for cash at the day's lowest level.

During early trade, Brent oil prices fell to $69.54 per barrel as OPEC+ agreed for a production hike in September, while concerns over a cooling US economy and trade tariffs also weighed, Bhansali noted.

For opening gains of rupee, Bhansali noted that, "The fall in dollar index and rise in Asian currencies prompted the Indian rupee to open higher. Exporters are expected to sell the upticks while importers may buy to serve the cash dollars while waiting for hedging."

On Friday, the local currency ended 1.16% weaker for the week, the fourth consecutive weekly loss.