Rupee rises after India, US policy minutes; opens higher at 87.03/$

Indian Rupee today: The domestic currency opened 4 higher at 87.03 against the dollar on Thursday, according to Bloomberg

The Indian Rupee advanced marginally on Thursday after the minutes of the Reserve Bank of India's Monetary Policy Committee's (MPC) August meeting stressed on uncertainties of the impact of the United States (US) tariffs. 

 

The domestic currency opened 4 higher at 87.03 against the dollar on Thursday, according to Bloomberg. The unit has slipped 11.69 per cent in the current financial year and 1.57 per cent in 2025 so far. In August, it gained around 0.73 per cent against the dollar.

 

Rupee showed strength after nearly testing a record low of 87.90 last week, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. The currency, which had offered favourable levels for exporters earlier, is now providing importers with an opportunity to hedge near-term payables, he said. 

 

In the previous session, the Rupee weakened as oil companies bought dollars to pay for Russian crude, even as India continues to make purchases despite a 25 per cent tariff on certain exports, Bhansali said. "Importers may consider hedging short-term needs, while exporters could wait for better opportunities and sell on intra-day upticks." 

 

RBI minutes showed that all six members of the MPC unanimously decided to keep the policy repo rate unchanged at 5.5 per cent while maintaining the "neutral" stance. "Uncertainty in external demand, driven by tariff and geopolitical uncertainty, remains the major drag on growth as it also hinders private investment intentions, which is yet to show visible signs of improvement," said Sanjay Malhotra, governor, RBI, in the minutes.

 

Meanwhile, in the US, the FOMC minutes showed that the majority of officials saw inflation as a greater risk. Investors, meanwhile, will also brace for Fed Chair Jerome Powell's speech at the August summit in Jackson Hole, Wyoming.

 

Technically, the rupee continues to face strong resistance near 86.80 levels, while immediate support lies in the 87.60–87.80 zone, suggesting a range-bound bias until fresh triggers emerge, Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities, said.

 

The dollar index, a measure of the greenback against a basket of six major currencies, was up 0.09 per cent at 98.31.

 

In commodities, crude oil prices climbed as investors remained focused on the Ukraine peace push, with a bigger-than-expected weekly drop in US crude inventories. Brent crude price was up 0.37 per cent at 67.09 per barrel, while WTI crude prices were higher by 1.38 per cent at 63.21 per barrel, as of 9:10 AM IST.