Rupee Weakens At Open Against US Dollar

The Indian rupee opened weaker against the US dollar on Tuesday. It opened 8 paise weaker at 85.08 to the dollar, following its previous close at 85.03 on Monday.

The currency snapped its two-day gains amid pressure on Brent crude and an easing dollar index. The dollar index was trading at 0.17% at 99.17 as of 9:12 a.m. on Tuesday.

As per Head of Treasury and Executive Director Anil Kumar Bhansali at Finrex Treasury Advisors LLP, the trade range for the day is 84.90/85.60. He added that exporters may wait to sell, and importers may hedge payables at around 85.00 levels when they get it.

"As FPIs continue buying Indian shares along with debt, the flows have bought the Indian rupee to the cusp of 85 from almost 88 two months ago. The range for today is expected to be between 84.90 and 85.60, with expectations that RBI could buy dollars at 85 levels while others sell," he stated.

With talks being underway between Washington and Tehran, geopolitics remain at the fore; the talks might determine whether curbs on Iranian oil will be loosened. Oil prices became stable after a heavy drop amid trade negotiations between the US and other countries.

Brent slumped to $66 a barrel after a 1.5% decline on Monday, while West Texas Intermediate touched nearly $62 a barrel.