Rupee Ends Weaker Against US Dollar For Sixth Consecutive Day
Rupee's weakess comes against the backdrop of continued uncertainty over Indo-US trade talks, notes Riya Singh of Emkay Global Financial Services.
The Indian rupee's weakness against the US dollar continued as it ended trade on Wednesday four paise weaker, settling at 86.41.
This marks the sixth consecutive day that the local currency has faced pressure against the greenback.
Rupee's weakness comes against the backdrop of continued uncertainty over India-US trade talks, notes Riya Singh of Emkay Global Financial Services.
"A lack of concrete progress on the much-anticipated US-India trade deal has amplified market anxiety, especially after President Trump reiterated tariff threats on BRICS nations, citing geopolitical reasons and a need to safeguard the dollar’s reserve currency status," she said.
The pressure in rupee is likely to extend further as investor look for cues ahead of Thursday's composite PMI data.
"Technically, USD/INR holds a bullish bias with support at 85.75 and resistance at 87.00," she said.
"Markets now eye Thursday’s composite PMI data from both India and the US for further directional cues, while continued portfolio outflows and lingering tariff uncertainties are likely to keep the Rupee under depreciation pressure, with RBI intervention the only factor limiting excessive volatility," she concluded.
