Rupee advances despite dollar gains; opens 10 paise higher at 87.25/$

Indian Rupee today: The domestic currency opened 10 paise higher at 87.25 against the dollar on Tuesday, according to Bloomberg

The Indian Rupee traded higher on Tuesday as geopolitical tensions eased after US President Donald Trump and Ukrainian President Volodymyr Zelenskiyy expressed optimism over trilateral talks with Russia.

 

The domestic currency opened 10 paise higher at 87.25 against the dollar on Tuesday, according to Bloomberg. 

 

The unit rose to 87.35 on Friday from a close of 87.55 in the previous session and was likely to open flat today, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. The currency gained as foreign portfolio investors (FPIs)  returned modestly to Indian equities after Prime Minister Narendra Modi announced growth measures, including changes in the Goods and Services Tax regime (GST), he added. 

 

The Rupee is expected to trade in a range of 87.20–87.60, Bhansali said. With stocks opening lower, a stronger dollar index, and weakness in Asian currencies, the dollar is likely to remain in demand against the Rupee after the flat start, he added. "Exporters may look to sell near 87.60, while importers could buy on dips to meet near-term requirements." 

 

An end to Russia's war in Ukraine could be in sight as leaders of the US, Ukraine, and the European Union expressed confidence in the progress of peace talks.

 

The domestic unit has shed 2.15 per cent so far this financial year against the greenback, and 1.99 per cent in the calendar year, but has managed a 0.24 per cent uptick in August.

 

The unwinding of long dollar positions and support from the Reserve Bank of India (RBI) prevented the currency from hitting a new record low after coming close two weeks ago. The Rupee today also shrugged off any major impact from the rising dollar, which climbed to 98.21 on Tuesday as Trump hosted talks on ending the war in Ukraine and traders cut bets on a September rate cut ahead of Federal Reserve Chair Jerome Powell’s speech.

 

The dollar index, a measure of the greenback against a basket of six major currencies, was up 0.01 per cent at 98.17.

 

In commodities, crude oil prices were trading lower on optimism over trilateral talks with Russia. Brent crude price was down 0.50 per cent at 66.27 per barrel, while WTI crude prices were lower by 0.54 per cent at 63.08, as of 9:20 AM IST.