The Indian rupee opened weaker against the US dollar on Thursday. Traders now look forward to the outcome of US Federal Reserve's meeting due next week and they also assess Trump government's potential decision to impose 10% duty on China products.
The domestic currency weakened by 14 paise to open at 86.47, against the US dollar, according to Bloomberg. It had closed at 86.33 on Wednesday.
At 9:08 a.m., the dollar index, which tracks the greenback's strength against six major currencies, was 0.1% higher at 108.27.
"Conflicting White House statements regarding additional levies on Chinese imports create choppy market conditions," said Kunal Sodhani of Shinhan Bank. "Investors expect no immediate rate cuts from Fed in the first half of the year."
For USDINR, 86.25 acts as a support while 86.60 a resistance, according to him.
"Indian rupee, which gained almost up to 86.32 yesterday, due to inflows from Vedanta and bond market inflows, is expected to open weaker at 86.47 this morning," said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors. The wide range is expected to be 86.20/60 for the day, he said.
March futures contract of both WTI crude and brent crude were 0.25% down at $75.25 a barrel and $78.80 a barrel, respectively.
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