- Indian rupee opened 16 paise weaker at Rs 86.57 against the US dollar, lowest in a month
- Brent crude oil rose to $69.53 per barrel amid easing geopolitical tensions and supply restrictions
- US dollar index rose to 97.57 supported by strong US labour market data and falling jobless claims
The Indian rupee opened 16 paise weaker at Rs 86.57 against the US dollar, marking its lowest level in a month, as global cues and rising crude oil prices weighed on sentiment. The currency had closed at Rs 86.41 on Thursday.
Market participants can expect the rupee to trade within a range of Rs 86.10 to Rs 86.60 through the day, said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
The weakness in the rupee comes amid a firming dollar, rising Brent crude prices, and persistent foreign portfolio outflows.
Brent crude rose to $69.53 per barrel in early Asian trade, supported by easing geopolitical tensions and developing trade agreements. “Ongoing restrictions on Russian oil by the EU and temporary Russian export suspensions have tightened global supplies,” said Bhansali
Bhansali added, “The forecast is for a moderate price rise going into the next quarter with an expectation of $70.70 per barrel by September-end.”
The US dollar index traded moderately higher at 97.57, buoyed by strong labor market data. “Jobless claims have fallen for the sixth straight week, reinforcing the strength of the US economy,” Bhansali noted.
The dollar remained firm against major currencies, trading at 1.1741 against the euro and 147.43 against the yen, following the European Central Bank's decision to hold rates steady at 2%—its first pause after seven consecutive cuts since 2024. “This could signal a potential end to its easing cycle with inflation also reaching the target of 2%,” Bhansali said.
He added, “Policymakers emphasised the high degree of uncertainty emanating from unresolved EU-US trade negotiations and potential tariffs, which played a key role in their cautious stance.”
Asian equities opened lower, mirroring global caution. The Nikkei fell 0.56%, Hang Seng dropped 0.69%, and Shanghai Composite slipped 0.17%. Meanwhile, Gift Nifty indicated a positive start, up 31 points.
Currency movements reflected broader trends, JPY, CNH, IDR, and KRW all weakened against the dollar, while commodity-exporting economies showed more resilience. “Central banks continue to intervene to manage volatility,” Bhansali said.
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