The Indian Rupee opened weaker against the US Dollar as it weakened by 15 paise to 86.35 against the dollar.
The domestic currency ended stronger against the dollar on Friday, appreciating by 26 paise to close at 86.21. Rupee had started Friday on a positive note, strengthening by 18 paise to 86.28 against the dollar, compared to its previous close of 86.46, as per Bloomberg data. This gain was supported by a drop in both the dollar index and crude oil prices.
Crude oil prices came were under pressure on Friday, following comments from U.S. President Donald Trump urging Saudi Arabia to lower prices to help curb Russia’s ongoing conflict. Trump also warned of potential sanctions on Russia unless it de-escalates the war.
Traders expect the US Federal Reserve to hold interest rates steady at its January meeting. The FOMC Press Conference will be closely watched as it might offer some hints about the US rate path, said Kunal Sodhani, global trading centre, FX & Rates Treasury, Shinhan Bank India.
Rupee is expected to trade in a range for the day between 86.10 and 86.45. Exporters may consider hedging small amounts near the 86.60 level, which is currently being supported by the Reserve Bank of India (RBI). On the other hand, importers are advised to buy the dips as the currency moves lower, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Last week, UBS Group AG recommended that investors short the Indian rupee and adopt an underweight stance on Indian stocks. India’s $4 trillion economy is entering a “structural slowdown”, driven by weak credit growth, declining foreign direct investment, and a broader deceleration in the country’s economic performance, UBS said.
. Read more on Markets by NDTV Profit.The domestic currency ended stronger against the US dollar on Friday, appreciating by 26 paise to close at 86.21. Read MoreMarkets, Economy & Finance, Notifications
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