The Indian rupee opened weaker on Wednesday. The currency weakened by 4 paise to open at Rs 87.12 against the greenback, according to Bloomberg. It had closed at Rs 87.08 on Tuesday.
“Rupee to open lower only, despite the gains seen in Asian currencies and European currencies, as equities are all down in Asia. For now, the trade war seems to have slowed down, as we await for comments from Trump on European exports and also on currencies,” said Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP.
Bhansali expects the rupee to trade in Rs 86.90 to 87.25 range on Wednesday, with exporters on the watchful side for hedging.
“Trump’s decision to delay tariffs on Canada and Mexico has resulted in a decline in USD’s risk premium. China has retaliated with tariffs on the US, which would take place from Feb. 10. US JOLTS Job Openings for December point to further job cooling in opening. For Rupee, 86.90 acts as a support while 87.29 a resistance,” said Kunal Sodhani from FX Hub.
US Dollar Index stood at 107.8520 and was 1.10% down. While the Brent Crude Oil was at $75.85 and was 0.46 down%.
The US JOLTS Job Openings for December faced a bigger decrease to 7.6 million openings, from the 8 million expected. Which is down from 8.098 million in November. In addition to these cues, the geopolitical headlines and the US data, two Federal Reserve speakers, Atlanta Fed President Raphael Bostic and San Francisco Fed President Mary Daly, will speak and might leave comments for markets to consider.
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