Latest news with #HSBCManufacturingPMI

Business Standard

Rupee opens lower at 85.39/$ as high crude prices offset weak dollar

The Indian Rupee opened weaker on Tuesday as rising crude oil prices weighed on the currency amid a weak dollar. The domestic currency opened 13 paise lower at 85.39 against the greenback, after closing at 85.52 on Monday, according to Bloomberg. The weakness in the currency came after the unit snapped a four-day losing streak. The Indian rupee, which strengthened to 85.38 on Monday, is expected to open lower and trade within a range of 85.25–85.75, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "With the dollar index weakening and Asian currencies gaining, a move towards 85.00 is likely in the near term." Foreign portfolio investors' outflows combined with firmer crude oil prices prevented a stronger rally on Monday, Amit Pabari, managing director at CR Forex Advisors, said. Global funds sold equity worth ₹2,589.47 crore while the crude oil prices rose over 3 per cent. India's HSBC Manufacturing PMI fell to a 3-month low of 57.6 due to rising prices and weak exports, Pabari noted. However, fourth quarter GDP grew 7.4 per cent, driven by strong consumption and a surge in construction and manufacturing, he said. "Technically, the rupee is likely to trade in a range with 85.90-86.00 acting as a strong resistance, while 85.00-85.20 will act as a support." The dollar index fell to its lowest since 2023 after the Manufacturing Imports Index and Manufacturing PMI slipped in the US. The Trump administration's renewed protectionist stance, unpredictable tariff threats, and tax policies have rattled institutional investors, causing a broad-based selloff in US equities and debt, experts said. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.17 per cent at 98.87. The index is likely to remain under pressure, facing strong resistance near the 99.80–100.00 zone and gradually declining toward 98, followed by 97.50, according to Pabari. On the trade tariffs front, Beijing has yet to confirm whether Xi Jinping will participate in a call that the White House is hinting at for this week, according to reports. This comes after the two countries accused each other of violating a trade agreement reached last month. In commodities, crude oil prices extended Monday's 3 per cent gains after the Opec+ agreed to increase production in July. Brent crude price was up 0.59 per cent to $65.01 per barrel, while WTI crude prices were 0.72 per cent higher at 62.97, as of 9:03 AM IST.