Rupee Takes A Breather After Hitting Record Low
Rupee had opened flat at Rs 85.08 against the greenback.
The Indian rupee opened flat on Friday, after it hit record low the previous day. The currency opened at Rs 85.08 against the greenback, according to Bloomberg. It hit a low of Rs 85.1 after the flat opening.
It had closed at Rs 85.08 on Thursday and had touched a record low of 85.09 a dollar.
"The Indian Rupee is facing headwinds from both global and local factors. As the Federal Reserve's decision to adopt a cautious approach toward rate cuts in 2025 triggered a more than 1% correction in Indian equities," said Amit Pabari, managing director, CR Forex Advisors.
While on the domestic front, the RBI appears constrained in its ability to intervene as effectively as earlier this year, partly due to tightening banking system liquidity, he also noted.
Pabari expects the pair to consolidate in the near term, within a range of 84.70 to 85.20.
"Indian rupee, which ended at it's lowest after Fed's hawkish rhetoric on interest rates, along with Asian currencies, is expected to open flat. The rupee fell to 85.33 in the NDF before a recovery probably due to selling by RBI," said Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP.
Bhansali expects the Rupee to remain weak as demand outstrips supply. Importers need to keep buying their payables and keep themselves hedged while exporters may wait to sell.
US Dollar Index stood at 108.4360 and was 0.03% up.
While Brent Crude Oil was at $72.48 and was down 0.04%.
"Brent oil prices fell amid Fed jitters and demand concerns keeping the prices at $ 72.48 per barrel. The prices were pressured by a strong dollar index, which was at a two-year high," according to Bhansali.
Limited details on China stimulus and cooling US fuel demand also weighed on the prices, he noted.
