Rupee Falls 51 Paise Against Dollar, The Most In Six Weeks At Open
The local currency weakened sharply to open at Rs 85.75 against the greenback.
The rupee opened sharply weaker against the US dollar on Monday, extending losses after briefly strengthening in the previous session, as global risk sentiment worsened.
It opened at 85.75 per dollar, down 51 paise from Friday’s close of 85.24. The unit had touched 84.95 at one point on Friday before slipping in offshore trade.
Global sentiment remains fragile amid trade war concerns after China imposed 34% tariffs on US goods, prompting a sharp selloff across global equities.
The S&P 500 and Nasdaq fell 6% and 5.8% on Friday, while Kospi and Nikkei are down 5% and 6.5%, respectively, and Hang Seng has slumped 8.7% on Monday. The dollar index was up at 103.07, while Brent crude dropped 2.65% to $63.84 after Saudi Arabia slashed its official selling price.
IFA Global expects the rupee to trade in the 85.60–86.00 range with a weakening bias, tracking equity weakness and global dollar strength.
“Rupee’s early gains on Friday were a mirage,” said Amit Pabari, MD at CR Forex Advisors. “FIIs pulled out Rs 3,484 crore, and hawkish Fed commentary supported the dollar.”
He added that the Reserve Bank of India may be quietly defending the 85 mark, with forex reserves rising by $6.6 billion last week.
Despite short-term pressure, Pabari remains positive on the rupee’s outlook. “Crude near $64, robust factory data, surplus liquidity, and rising hopes of a Fed cut in June support the rupee over the medium term,” he said.
A near-term move towards 86.20 is possible, but 85 remains a key support, according to Pabari.
