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Rupee slips as tariff ruling lifts dollar; opens 16 paise lower at 85.52/$
Indian Rupee today: The domestic currency opened 16 paise weaker at 85.52 against the US dollar, after ending at 85.36 on Wednesday
SI Reporter Mumbai
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Business Standard
7 hours ago
- Business Standard
Rupee slump deepens; ends 31 paise lower after breaching 86/$ intraday
The Indian Rupee came under pressure and weakened past the 86 mark in Wednesday's intraday session amid likely foreign outflows and firm oil prices. The domestic currency closed 31 paise lower at 85.90 against the greenback, after closing at 85.59 on Tuesday, according to Bloomberg. During the session, the local unit fell 0.51 per cent, the highest since May 22, to weaken past the crucial 86 level. The currency has depreciated by 0.61 per cent so far this week. The dollar-rupee pair is expected to trade within a range, with strong resistance near 86.00–86.20 levels and immediate support around 85.00–85.20 levels, according to Amit Pabari, managing director at CR Forex Advisors. A breakout on either side could trigger a directional move, he said. All eyes will be on the RBI's six-member monetary policy committee (MPC), which will begin its meeting today and is expected to cut the repo rate by 25 basis points (bps) to 5.75 per cent. The committee is scheduled to announce its policy review on Friday. Rupee traded weak as foreign investors remained in sell mode ahead of the RBI policy announcement scheduled for Friday, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. "Sentiment remained under pressure due to persistent fund outflows and the dollar index rising above the 99.00 level." With key economic data lined up from the US, volatility is expected to stay elevated, he said. India's dominant services sector maintained its growth in May. The HSBC India services purchasing managers' index (PMI), compiled by S&P Global, stood at 58.8 in May, marginally up from 58.7 in April. Meanwhile, global investors continued to sell domestic equities, keeping the currency under pressure. A flurry of block deals saw global funds pare off stake in Indian companies in Wednesday's trading session. Foreign portfolio investors remained net sellers for the third straight day on Tuesday. Meanwhile, the Dollar Index remained flat after Tuesday's gains as the US April JOLTS report showed a surprise increase in job openings, beating market expectations. The uptick in the job openings rate further supported the greenback. The dollar index, which measures the greenback against a basket of six major currencies, was down 0.03 per cent at 99.19.
Business Standard
10 hours ago
- Business Standard
INR tumbles to 86 per US dollar, focus stays on equities and dollar
Indian Rupee slumped today as a firm US dollar clubbed with lax local equities weighed the currency down. The dollar index is holding above 99 mark on Wednesday with focus on US nonfarm jobs data due on Friday. The dollar index that measures the greenback against a basket of currencies is quoting at 99.28, up 0.12% on the day, recovering from a six-week low yesterday as it clocked a 0.53% spurt for the session. INR was pressured following this in early moves and swiftly fell to 86 per US dollar mark. It currently quotes at 85.97 per US dollar, down 36 paise on the day. INR/USD futures on the NSE are quoting at 86.03, up 0.35% on the day. Meanwhile, the local equities are up slightly today but overall mood is cautious after a recent slide that made NIFTY50 close at a two-week low in last session.
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Business Standard
14 hours ago
- Business Standard
Rupee falls for second straight day amid likely outflows; opens at 85.75/$
Indian Rupee opened lower for the second straight day on Tuesday amid renewed foreign outflows and a recovery in the dollar index. The domestic currency opened 16 paise lower at 85.75 against the greenback, after closing at 85.59 on Tuesday, according to Bloomberg. The currency has depreciated by 0.56 per cent so far this week. The Indian Rupee depreciated on Tuesday after a brief spell of range-bound trading, driven by a stronger dollar and renewed foreign institutional investor (FII) outflows from equities, according to Amit Pabari, managing director at CR Forex Advisors. Global funds have been on a selling spree in domestic equities for the last three sessions. The Reserve Bank of India (RBI) remains well-positioned to step in, with a comfortable reserve buffer of $693 billion, limiting the scope for any sharp rupee depreciation, he said. "Additionally, robust domestic bond issuances are supporting the rupee." The rupee is expected to open flat today, with near-term weakness likely, Bhansali said. Market participants are closely watching the RBI's actions around the 85.70 level, which it has been defending in recent days, he added. The Dollar Index rose on Tuesday after the US April JOLTS report showed a surprise increase in job openings, beating market expectations. The uptick in the job openings rate further supported the greenback. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.01 per cent at 99.21. India's Services and Composite PMI will be the key data scheduled for release today. The dollar-rupee pair is expected to trade within a range, with strong resistance near 86.00–86.20 levels and immediate support around 85.00–85.20 levels, Pabari noted. All eyes will be on the RBI's six-member monetary policy committee (MPC), which will begin its meeting today and is expected to cut the repo rate by 25 basis points (bps) to 5.75 per cent. The committee is scheduled to announce its policy review on Friday. In commodities, crude oil prices traded lower after a two-day rise following OPEC's latest decision to increase supply. Brent crude price was down 0.32 per cent to $65.42 per barrel, while WTI crude prices were 0.36 per cent lower at 63.18, as of 09:08 AM IST.
