The Indian rupee opened 13 paise weaker at 85.52 against the US dollar on Tuesday, in comparison to its previous close of 85.39 on Monday. This slight depreciation comes amid various global and domestic economic factors influencing the currency markets.
Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, provided insights into the day's trading range and hedging strategies. According to him, the rupee is expected to trade in a range of 85.25 to 85.75.
The rupee is expected to be in a range as it consolidates before a breakout from the current levels, said Bhansali.
"Exporters need to hedge near 85.70 to 85.75. Importers need to wait for hedging purposes," he advised.
For the domestic currency, 85.10 will act as a support while 85.70 will be resistance level, according to Kunal Sodhani, head of treasury, global trading centre, FX & Rates Treasury, Shinhan Bank India.
Additionally, the US dollar fell and held to near six weeks low of 98.88, on signs of fragility in US economy because of damage from trade war that US President Trump's administration is waging. The dollar index touched a low of 98.58, the lowest since late April.
The euro was at 1.3520, while the Great British Pound was at 143.16 and the Japanese Yen fell to 142.71. Asian currencies were weaker, with the Chinese Yuan at 7.1990, the Indonesian Rupiah at 16,279 and the South Korean Won at 1,377.
On Tuesday, crude rose for a second day with Brent crude—the global benchmark for crude oil—rising 0.68% to $65.07 per barrel, as dollar fell to its lowest since 2023, boosting the appeal of commodities. Crude was up as much as 5% on Monday as OPEC+ boosted supply in line with market expectations.
"Uncertainty over US Iran nuclear deal and worsening tensions between Ukraine and Russia heralded more political supply disruptions," said Bhansali.
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