- Indian rupee opened 8 paise stronger at 87.72 against the US dollar on Wednesday
- Rupee range expected between 87.50 and 88.25 amid RBI monetary policy meeting
- US-India trade and energy tensions likely to cause rupee volatility and pressure
The Indian rupee strengthened at open on Wednesday ahead of the Reserve Bank of India monetary policy committee meet today. The local currency opened 8 paise stronger at 87.72 against US Dollar on Wednesday compared to its closing at 87.80 against a dollar on Tuesday.
Range for the day is expected to be between 87.50 and 88.25, said Anil Kumar Bhansali, head of treasury and Executive Director, Finrex Treasury Advisors LLP.
The ongoing friction between the US and India on trade and energy is likely to keep the rupee volatile and under pressure, said Jateen Trivedi, VP research analyst - commodity and currency, LKP Securities.
India rupee which made a closing low of 87.80 but was well protected by RBI is expected to open flat today and we wait to watch how long RBI protects it as Trump clamours to put additional tariffs on India today as no solution has emerged between the two countries till now, Bhansali highlighted.
"If no solution emerged between the two countries in buying Russian oil then the tariffs will come. Till then we may expect rupee to remain range bound with RBI protecting 88 and FPIs continuing to buy dollars along with oil companies," he said.
Brent oil prices fell to $67.99 per barrel as they fell to a one month low with Russian Crude buyer sanction in focus. "The US may hit all such buyers like India and China with tariffs as he continued his threat in Tuesday," Bhansali noted.
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