The Indian rupee opened flat at 85.62 against the US dollar on Tuesday, in comparison to its previous close of 85.63 on Monday. This comes amid various global and domestic economic factors influencing the currency markets.
Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, provided insights into the day's trading range and hedging strategies. According to him, the rupee is expected to trade in a range of 85.45 to 95.
"As markets await for the outcome of US-China trade talks the rupee has gone into a shell within the broad range of 85-86 with daily inflows and outflows deciding the movement on either side," said Bhansali
He advised exporters need to hedge near 85.95 and importers to wait for hedging purposes.
Additionally, the US dollar was steady at 99.18 as trade talks continued. The euro was at 1.1399, pound was lower at 1.3537, while the Japanese Yen fell to 144.95. Amongst Asian currencies, with the Chinese Yuan gained at 7.1846, the Indonesian Rupiah at 16,282 and the South Korean Won at 1,359.
On Tuesday, crude On Tuesday, crude snapped its four day decline with Brent crude – the global benchmark for crude oil – rising 0.18% to $67.16 as trade talks between US-China extends for a second day following hints of progress. Brent was at its highest since April 28.
In the last two months crude prices have tumbled to four year low amid US President Donald Trump's tariff wars. While it may have recovered some of the losses, it still remains almost 9% lower this year as trade conflicts persist and OPEC+ has changed its startergy and abandoned the earlier stratergy of defending higher prices by curbing output.
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