The Indian rupee opened 5 paise stronger against the US dollar at 85.65, compared to its previous close of 85.70 on Wednesday.
Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, commented on the day's trading range, stating, "The range for the day is expected to be between 85.35 and 85.95. Exporters are advised to hedge near 86.00, while importers may hedge for the near term at 85.50 and below."
Brent oil prices rose to $68.50 per barrel following sharp gains in the previous session. This increase was driven by Iran's suspension of cooperation with the UN nuclear watchdog, raising fears of renewed hostilities in the Middle East. However, an unexpected inventory build-up in the US and the upcoming OPEC meeting, where output is set to be increased, kept gains in check, Bhansali noted.
Asian equities saw initial gains fall off as investors braced for the Non-Farm Payroll Report tomorrow and awaited the passage of the US tax and spending bill, known as OBBBA, in the House of Representatives, he further added.
The US dollar continued to remain under pressure despite some relief overnight, as US President Donald Trump reiterated that rates should be cut to 1% from the current 4.50%. Concerns over Fed independence have driven the dollar down to 96.80, Bhansali said.
"The Indian rupee fell yesterday due to outflows from HDB, oil companies, and importers buying, taking it to 85.76 before closing at 85.70," he also noted.
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