Rupee Opens Weaker Against US Dollar Amid Weak Market Sentiment
The rupee's weak opening comes against the backdrop of a continued trend of rupee weakness against the greenback, amid cautious sentiment in the domestic market and continued dollar demand.
The Indian rupee opened four paise weaker against the US dollar, trading at 86.41 against Tuesday's close of 86.37.
The sluggish open comes against the backdrop of a continued trend of rupee weakness against the greenback, especially in the midst of cautious sentiment in the domestic market and continued dollar demand, notes Dilip Parmar of HDFC Securities.
"The Indian rupee depreciated for the fifth consecutive day, driven by risk-averse market sentiment and consistent dollar demand," he said.
"Regional currencies remain range-bound as the dollar consolidates amid geopolitical uncertainties. Near-term, spot USDINR has support at 85.95 and resistance at 86.70," Parmar added.
Another factor impacting the rupee's trajectory against the US dollar is oil prices, which edged higher as investors continue to monitor progress of the US and its trade partners, including China.
US Treasury Secretary Scott Bessent said he will meet his Chinese counterparts for trade talks in Stockholm next week and will “be working out what is likely an extension” to the current Aug. 1 deadline.
