Rupee Continues To Slide, Opens Weak Against US Dollar
For Thursday, the rupee was expected to be in a range between 86.40 and 86.70.
Rupee opened weaker against the US Dollar on Thursday as it declined by 3 paise to open at 86.58. The domestic currency had ended on a weak note against the dollar on Wednesday, slipping by 2 paise to close at 86.55.
This marks a continuation of its downward trend, following a 19 paise drop on Tuesday that saw the rupee settle at 86.53.
The weakness in the domestic currency comes amid ongoing global economic concerns and market volatility. Despite efforts by the Reserve Bank of India (RBI) to support liquidity through special measures, including open market operations and forex market interventions, the currency remains under pressure due to external uncertainties.
These measures are expected to infuse about Rs 1.5 lakh crore into the banking system, but the rupee continues to face challenges.
For Thursday, the rupee was expected to open at 86.58, with a range forecasted between 86.40 and 86.70, according to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP. Bhansali advised exporters to hedge small amounts near the 86.60 level, which is currently supported by the RBI, while importers should consider buying on dips.
Meanwhile, Brent oil prices remained steady at $76.54 per barrel as market participants reacted to a hawkish Federal Reserve and ongoing global trade uncertainties. Traders were particularly focused on the possibility of the US imposing more tariffs, particularly on China.
The US Federal Reserve kept rates on hold , adopting a hawkish stance, signaling that rates could remain higher for longer, which contributed to a weaker outlook for US stocks. The dollar index held steady at 107.85, with the market anticipating a 90% chance of a 25-basis-point rate cut in 2025.
Looking ahead, the rupee is expected to remain in a broad range of 86.40 to 86.70, with the RBI appearing to protect the 86.61 level, Bhansali noted.
