Rupee Opens Weaker Against Dollar
The rupee is expected to trade in a range of 85.50 to 86.
The Indian rupee opened 3 paise weaker at 85.67 against the US dollar on Monday, in comparison to its previous close of 85.64 on Friday. This slight depreciation 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 85.50 to 86.
"The market took comfort from what the Governor said on Friday and allowed the rupee to appreciate at the closing despite a rate cut from RBI," said Bhansali
He advised exporters to hedge near 86 and importers to wait for hedging purposes.
Additionally, the US dollar was slightly higher at 99.02. The euro was at 1.1400, while the Japanese Yen fell to 144.48. Amongst Asian currencies, the Chinese Yuan gained at 7.1854, the Indonesian Rupiah at 16,312 and the South Korean Won at 1,360.
On Monday, crude extended its decline for the fourth day with Brent crude – the global benchmark for crude oil – falling 0.08% to $66.42 as trade talks between US-China indicated potential for reduced global tensions. Oil prices posted their first weekly gains and were up in the current week with Brent at $ 66.41 per barrel.
In the last two months, crude prices have tumbled to a four-year low amid US President Donald Trump's tariff wars. While it may have recovered some of the losses, it still remains almost 11% lower this year as trade conflicts persist and OPEC+ has changed its strategy, abandoned its earlier stance of defending higher prices by curbing output.
