Rupee Opens Weak Against US Dollar Amid Tariff Tensions
The rupee's trading range for the day is expected to be between 85.52 and 85.9.
The Indian rupee opened weak against the US dollar at 85.83 on Friday, after closing at 85.65 on Thursday. The rupee's trading range for the day is expected to be between 85.52 and 85.9, said Amit Gupta, research support at Kedia Stocks & Commodities Research Pvt.
The rupee ended little changed a day earlier as traders avoided aggressive directional bets on the currency, he noted.
Dollar-rupee forward premiums showed minimal movement, indicating limited support for an interest rate cut later this month, Gupta added.
The ongoing tariff tensions between the US and other countries have added to the uncertainty in the currency markets.
US President Donald Trump recently announced a 50% tariff on US copper imports and a 50% duty on goods from Brazil, both set to begin on Aug. 1. These measures have contributed to the volatility in the forex market.
"Market sentiment is getting battered by renewed tariff threats from the Trump administration. Fed Minutes solidify expectations for a September rate cut amid concerns of rising inflation from tariffs," Kunal Sodhani of FX Hub said earlier.
On Friday, oil remained steady after falling more than 2% on Thursday as investors weighed the fallout from OPEC+ supply and President Donald Trump’s tariffs. West Texas Intermediate was near $67 a barrel and Brent closed below $69 in the previous session, as per Bloomberg.
