Rupee Opens Weaker Against US Dollar, Faces Continued Pressure
Indian rupee opened weaker against the US dollar on Wednesday, first day of 2025, dipping 2 paise to 85.62, reflecting ongoing volatility in the currency markets. This follows a weaker close on the final trading day of 2024, when the rupee fell by seven paise, closing at 85.61.
The domestic currency had opened at 85.59 on Tuesday, a 5-paise dip from its previous close of 85.54. It then further weakened by 9 paise, mirroring the challenges faced by the rupee as it continues to grapple with fluctuations in global dollar strength and local demand pressures.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, highlighted the ongoing volatility, noting that the rupee's movement remains constrained by persistent dollar demand. He predicts a trading range for the day between 85.40 and 85.70, signaling a continued weaker trend for the rupee.
According to Bhansali, exporters might hold back from selling the rupee and could set a stop loss at 85.25, as the currency remains under pressure. Importers, on the other hand, are advised to buy dollars on any dips.
Despite the rupee's downward movement, Bhansali pointed out that the Reserve Bank of India had intervened to support the currency, with the rupee being protected at 85.6450 in the previous session.
Additionally, with US markets closed for the day, Bhansali suggests that cash dollar demand will be muted, potentially reducing short-term pressures on the rupee. However, he advises importers to seize any lower openings on the USD/INR pair as an opportunity to buy dollars for their payables.
On a broader economic note, Bhansali also pointed to India's fiscal deficit standing at 52.5% of the budgeted target for 2024-25 as of November, along with a 4.3% growth in the country's core industries for the same month. These domestic economic indicators continue to influence the rupee's outlook, with the currency likely to remain sensitive to both domestic developments and global market conditions.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
-
Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
