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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)
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)
Time of India
2 days ago
- Business
- Time of India
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. 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. Live Events 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.
Business Recorder
3 days ago
- Business
- Business Recorder
Indian rupee ticks up on likely inflows related to an equity index rejig, traders say
MUMBAI: The Indian rupee strengthened on Monday, aided by likely dollar inflows related to the rejig of a global equity index that helped the local currency sidestep a dip in most of its regional peers as U.S.-China trade tensions continued to simmer. The rupee rose to 85.4075 per U.S. dollar as of 11:00 a.m. IST, up 0.2% from its close of 85.5775 in the previous session. Traders said the rupee was supported by dollar sales from at least two large foreign banks on the day, likely related to the rejig of a global equity index. The dollar index, meanwhile, was down 0.1% at 99.2 as uncertainty about U.S. trade policies rebounded after President Donald Trump said late on Friday that he plans to double duties on imported steel and aluminium and accused China of violating a bilateral deal to roll back tariffs. Asian currencies and stocks were mostly lower, with the offshore Chinese yuan down about 0.2% at 7.2163. India's benchmark equity indexes, the BSE Sensex and Nifty 50 , declined 0.5% each, tracking their regional peers. The rupee 'remains in consolidation mode, with a broad range of 85-86,' said Anil Bhansali, head of treasury at Finrex Treasury Advisors. Indian rupee flips back to monthly decline, lags Asian peers Bhansali recommends that exporters wait for 85.70 to sell dollars, while importers can hedge around 85.25 levels. The focus this week will be on the Reserve Bank of India's monetary policy meeting on Friday, at which a 25-basis-point rate cut is widely expected. 'Despite no pressing need for a third successive rate cut on June 6, we expect the MPC (monetary policy committee) to cut - an opportunistic move amid the lower than expected inflation outcome and outlook, and retain the stance as 'accommodative',' Barclays said in a note.
Time of India
27-05-2025
- Business
- Time of India
Rupee fluctuates against dollar, closes at 85.09
Mumbai: The Indian rupee appreciated toward 84.78 per dollar in early trade Monday, but erased gains later in the day tracking the dollar gauge's strength to close at 85.09. That marked a modest advance of 13 paise from a close of 85.21 in the previous session. The rupee opened at 85.05 and breached the 84 mark in the first half of the trading session, before closing weaker. "Despite it being a US holiday, there was sufficient movement on both sides with dollar buying below 84.80 and dollar selling at 85.20," said Anil Bhansali, head of treasury at Finrex Treasury Advisors . Traders suggest the dollar-buying was on by nationalised banks and importers, while dollar sellers could be unhedged exporters. Dollar index was weaker at 98.6 in early hours of trading, and gained during the day towards 99.4 levels, adding pressure on rupee, traders said. "Monday's trade was a replication of the dollar index while trading activity was muted amid absence of global cues and due to holiday in the US and UK," said Dilip Parmar, currency research analyst at HDFC Securities.
