The Indian rupee strengthened against the US dollar on Friday amid a falling dollar index and crude oil prices.
The domestic currency strengthened by 18 paise to open at 86.28 against the US Dollar, according to Bloomberg, a day after it had closed at 86.46.
The dollar index, which tracks the greenback’s strength against six major currencies, was 0.1% lower at 107.93.
Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors, said brent oil was lower at $78.03 per barrel as Trump asked Saudi to lower prices, so that he could make Russia stop the war. He has also threatened sanctions against Russia if they do not get out of the war.
As of 9:08 a.m., March contracts of both brent and WTI crude traded around 0.1% down at $74.55 a barrel and $78.25 a barrel respectively.
Dollar index has started weaker Friday morning in Asian trading, after Trump has refrained from implementing aggressive tariffs following his inauguration, contrary to market expectations, said Sriram Iyer, senior research analyst at Reliance Securities.
According to Bhansali, inflows and outflows have kept the rupee volatile and he expects it to be in the range. On Japan’s CPI, he said the data came just before the conclusion of the meeting of BOJ, in which, interest rates are to be hiked by 25 bps. A softer yen has also factored into higher inflation as the Japanese yen was battered by a mix of low domestic rates and high US rates.
Exporters may continue to wait with a stop loss at 86.25, since the rupee continues to remain in a weakening mode due to dollar demand. Importers could buy all dips, he said.
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