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Economic Times
15 hours ago
- Business
- Economic Times
Rupee weakens to 86.02 amid equity outflows and Central Bank review
For the rupee, a key resistance now remains at 86.25/$1, from an earlier resistance of 85.80/$1. Traders are also betting against the rupee by cutting down on their long rupee positions. The Indian rupee weakened to 86.02 against the dollar on Wednesday, eventually settling at 85.90, influenced by equity outflows and NDF position adjustments before the RBI's policy review. Dollar demand from foreign banks and oil firms further pressured the rupee, which has declined 1.5% since last Monday. Shrinking interest rate differentials and tariff uncertainties also contributed to the rupee's depreciation. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: The Indian rupee weakened to 86.02 per dollar on Wednesday, before closing marginally higher at 85.90/$1, largely driven by equity outflows and squaring of offshore non deliverable forwards (NDF) positions ahead of the central bank's monetary policy review on Friday, traders rupee had opened at 85.74/$1 on demand from foreign banks and oil companies added to the pressure. The rupee had closed at 85.59 on intervention by the Reserve Bank of India helped contain excess losses and prevented the rupee from depreciating too far from the 86 level, traders said. The currency has declined 1.5% since last Monday, where it closed at 84.78/$1 and is the worst performing currency in Asia, according to LSEG data."Interest rate differentials between India and US are shrinking, and with the US not expected to cut, rupees' spot rates are weakening," said Anil Bhansali, head of treasury at Finrex Treasury the rupee, a key resistance now remains at 86.25/$1, from an earlier resistance of 85.80/$1. Traders are also betting against the rupee by cutting down on their long rupee positions."There has been some unwinding of long rupee positions amid tariff uncertainties," said Kunal Sodhani, head of treasury at Shinhan Bank India.
Time of India
16 hours ago
- Business
- Time of India
Rupee weakens to 86.02 amid equity outflows and Central Bank review
Mumbai: The Indian rupee weakened to 86.02 per dollar on Wednesday, before closing marginally higher at 85.90/$1, largely driven by equity outflows and squaring of offshore non deliverable forwards (NDF) positions ahead of the central bank's monetary policy review on Friday, traders said. The rupee had opened at 85.74/$1 on Wednesday. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sistema TMS para empresas de logística Sistema TMS embarcador Saiba Mais Undo Dollar demand from foreign banks and oil companies added to the pressure. The rupee had closed at 85.59 on Tuesday. Likely intervention by the Reserve Bank of India helped contain excess losses and prevented the rupee from depreciating too far from the 86 level, traders said. The currency has declined 1.5% since last Monday, where it closed at 84.78/$1 and is the worst performing currency in Asia, according to LSEG data. "Interest rate differentials between India and US are shrinking, and with the US not expected to cut, rupees' spot rates are weakening," said Anil Bhansali, head of treasury at Finrex Treasury Advisors. Live Events For the rupee, a key resistance now remains at 86.25/$1, from an earlier resistance of 85.80/$1. Traders are also betting against the rupee by cutting down on their long rupee positions. "There has been some unwinding of long rupee positions amid tariff uncertainties," said Kunal Sodhani, head of treasury at Shinhan Bank India.
Economic Times
2 days ago
- Business
- Economic Times
Rupee ends slightly lower, but bias for rise to 85 persists
The Indian rupee closed marginally lower on Tuesday, but analysts said the underlying bias continues to be for a gradual appreciation to 85 per dollar amid persistent dollar weakness and easing headwinds. ADVERTISEMENT The local currency, which settled at 85.59 against 85.3825 in the previous session, had to contend with mixed cues from Asian peers and a modest recovery in the dollar index, which clawed back part of Monday's losses. "The rupee is currently in a consolidation phase before the eventual breakout," said Anil Bhansali, head of treasury at Finrex Treasury Advisors. "With the dollar broadly struggling, we think a move towards 85.00 could materialize sooner rather than later." While the dollar index recovered modestly, it remains under pressure on U.S. policy and economy concerns. Data released on Monday showed U.S. manufacturing activity contracted in May. Meanwhile, worries over the U.S. fiscal deficit and the tariffs back-and-forth continue to linger. ADVERTISEMENT Analysts at HSBC said in a recent note that two key headwinds for the rupee - elevated oil prices and real effective exchange rate overvaluation - have begun to ease. Brent crude has declined meaningfully since March, which will help contain India's trade deficit, while a rally in the euro is expected to reduce the rupee's overvaluation, the analysts said. ADVERTISEMENT HSBC projects USD/INR to reach 85 by the end of the April-to-June quarter. Market participants await the Reserve Bank of India's policy decision and the U.S. non-farm payrolls report on Friday. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Reuters
2 days ago
- Business
- Reuters
Rupee ends slightly lower, but bias for rise to 85 persists
MUMBAI, June 3 (Reuters) - The Indian rupee closed marginally lower on Tuesday, but analysts said the underlying bias continues to be for a gradual appreciation to 85 per dollar amid persistent dollar weakness and easing headwinds. The local currency , which settled at 85.59 against 85.3825 in the previous session, had to contend with mixed cues from Asian peers and a modest recovery in the dollar index, which clawed back part of Monday's losses. "The rupee is currently in a consolidation phase before the eventual breakout," said Anil Bhansali, head of treasury at Finrex Treasury Advisors. "With the dollar broadly struggling, we think a move towards 85.00 could materialize sooner rather than later." While the dollar index recovered modestly, it remains under pressure on U.S. policy and economy concerns. Data released on Monday showed U.S. manufacturing activity contracted in May. Meanwhile, worries over the U.S. fiscal deficit and the tariffs back-and-forth continue to linger. Analysts at HSBC said in a recent note that two key headwinds for the rupee - elevated oil prices and real effective exchange rate overvaluation - have begun to ease. Brent crude has declined meaningfully since March, which will help contain India's trade deficit, while a rally in the euro is expected to reduce the rupee's overvaluation, the analysts said. HSBC projects USD/INR to reach 85 by the end of the April-to-June quarter. Market participants await the Reserve Bank of India's policy decision and the U.S. non-farm payrolls report on Friday.
Mint
2 days ago
- Business
- Mint
Rupee ends slightly lower, but bias for rise to 85 persists
MUMBAI, June 3 (Reuters) - The Indian rupee closed marginally lower on Tuesday, but analysts said the underlying bias continues to be for a gradual appreciation to 85 per dollar amid persistent dollar weakness and easing headwinds. The local currency, which settled at 85.59 against 85.3825 in the previous session, had to contend with mixed cues from Asian peers and a modest recovery in the dollar index, which clawed back part of Monday's losses. "The rupee is currently in a consolidation phase before the eventual breakout," said Anil Bhansali, head of treasury at Finrex Treasury Advisors. "With the dollar broadly struggling, we think a move towards 85.00 could materialize sooner rather than later." While the dollar index recovered modestly, it remains under pressure on U.S. policy and economy concerns. Data released on Monday showed U.S. manufacturing activity contracted in May. Meanwhile, worries over the U.S. fiscal deficit and the tariffs back-and-forth continue to linger. Analysts at HSBC said in a recent note that two key headwinds for the rupee - elevated oil prices and real effective exchange rate overvaluation - have begun to ease. Brent crude has declined meaningfully since March, which will help contain India's trade deficit, while a rally in the euro is expected to reduce the rupee's overvaluation, the analysts said. HSBC projects USD/INR to reach 85 by the end of the April-to-June quarter. Market participants await the Reserve Bank of India's policy decision and the U.S. non-farm payrolls report on Friday. (Reporting by Nimesh Vora; Editing by Mrigank Dhaniwala)
