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Rupee trades near one-month low despite tariff cheers; opens at 86.41/$
The domestic currency opened 4 paise lower at 86.41 against the dollar on Wednesday, according to Bloomberg. The rupee has witnessed nearly 0.93 per cent depreciation in the current calendar year. On Tuesday, the rupee briefly recovered to 86.22 before slipping to a one-month low of 86.41 against the greenback.
The Indian rupee, which had weakened to 86.42 in the previous session, is set to trade stronger, supported by optimism around the Japan trade deal that lifted sentiment across Asian markets, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
Exporters are advised to hold off on booking, with a stop-loss at 86.25, as foreign portfolio investors (FPIs) continue to sell, analysts said. FPIs sold equities for teh second straight day, worth ₹3,548.92 crore, taking the total outflows in July to ₹5826 crore. Importers, meanwhile, may consider buying on dips for near-term cash requirements, Bhansali said.
Rupee is expected to remain within a range of 85.75-86.60, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities.
On the tariffs front, the US President Donald Trump announced a trade deal, imposing a 15 per cent tariff on Japanese exports to the US. The Trump administration had also reached an agreement with the Philippines setting a 19 per cent tariff on their exports. Equity and currency markets in the Asia region rose after the deal announcement. ALSO READ:
Following this, the dollar index, a measure of the greenback against a basket of six major currencies, was up 0.05 per cent at 97.44.
In commodities, crude oil prices were stable amid US-Japan trade deal optimism and crude oil inventory decline of the US. Brent crude price was up 0.31 per cent at 68.80 per barrel, while WTI crude prices were lower by 1.47 per cent at 66.21, as of 9:09 AM IST.
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