The rupee opened stronger against the greenback as the dollar index plunged and hit the lowest level in over a year in Asia session, on rising tension between the US and China. The Indian unit opened 45 paise higher at 86.25 a dollar.
Financial markets in India were closed on Thursday on account of Mahavir Jayanti on Thursday. The rupee settled at over four-week low of 86.70 against the US dollar on Wednesday.
“Rupee is expected to rise above 86, with dollar index down below it’s September low of 100.20, with expectations of a further fall to 95 levels. A good uptick has allowed exporters to cover their exports holding and any upside due to risk aversion should be utilised for further covers. Today’s range is 86.00 to 86.60,” said Anil Kumar Bhansali, head, treasury and executive director, Finrex Treasury Advisors LLP.
After posting the biggest single-day fall Thursday, the dollar index slipped below 100-mark and fell to 99.71, the lowest level since July 18, 2023. Though recovered from day’s low, the index continued to trade with downward bias, which supported Asia-Pacific currencies against the greenback.
The dollar index was trading 0.82% down at 100.04 as of 8:53 a.m.
Crude oil futures continued to log losses after hitting a four-year low which also supported the Indian unit. Aggressive tariff policy was fuelling recession fears despite US President Donald Trump declaring a 90-day pause. Further, increase on tariff rates imposed on China, the world’s second largest economy, weighed on the commodity’s demand outlook.
The June future contract of brent crude was trading 0.33% down at $63.12 a barrel on Intercontinental Exchange as of 8:54 a.m.
. Read more on Economy & Finance by NDTV Profit.The Indian Rupee may appreciate beyond 86.00 against the greenback on Friday due to dollar weakness, according to forex traders. Read MoreEconomy & Finance, Markets, Business, Notifications
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