Rupee Extends Decline To Close Weaker Against Dollar

The Indian rupee closed weaker for the second day on Thursday, slipping by 13 paise to trade at 86.07 against the US dollar.

The Indian rupee opened marginally stronger, appreciating by 4 paise to trade at 85.90 against the US dollar. This modest gain comes amid a mixed global currency environment and cautious investor sentiment following overnight volatility in US markets.

The decline on Thursday comes as the dollar found support near the 98.70 mark. The rally in dollars was fuelled by US President Donald Trump's statement that he has no intention of firing Federal Reserve Chairman Jerome Powell. "Even with significant dollar inflows into the primary market, the Rupee followed the regional trend, closing at 86.08," said Dilip Parmar – Senior Research Analyst, HDFC Securities.

"Weakness in domestic capital markets also weighed on the rupee," added Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

The currency is likely to trade in a range of 85.75 to 86.25, said Trivedi.

On Thursday, oil continued to remain steady after its biggest gain in almost two weeks.

Crude has been buffeted in recent weeks, surging and collapsing along with perceived geopolitical risk in west Asia, although volatility has eased in recent days.

Brent surged on Wednesday to trade at $69 a barrel, with a decline of 0.44%, after sliding 12% three weeks ago. While West Texas Intermediate for August traded near $67, Bloomberg reported.