Rupee Closes Flat Against Dollar Despite Trade Optimism
Despite significant downward revisions in US employment data, the dollar has mostly held ground and Treasury yields have risen from their recent lows.
The Indian rupee closed flat at 88.1 against the US dollar on Wednesday. The domestic currency opened 3 paise weaker at 88.14 against the greenback after it settled at 88.11 a day ago, according to Bloomberg data.
The rupee's movement remained largely muted despite renewed trade-talk optimism between India and the US.
In a post on Truth Social, President Donald said that India and the US were still in negotiations to address the trade barriers between the two nations, and that he is looking forward to speaking with Prime Minister Narendra Modi.
Modi also responded saying that he is confident of India and the US concluding trade talks early, calling the two countries "close friends and natural partners."
"The FPIs had bought equities yesterday and despite Trump's positive announcement, the rupee opened slightly lower," said Anil Bhansali, executive director at Finrex Treasury Advisors LLP.
Despite significant downward revisions in US employment data, the dollar has mostly held ground and Treasury yields have risen from their recent lows. The Euro was lower and so was the British Pound as currencies consolidated, according to Bhansali.
