Indian Rupee snaps five-day winning streak; Ends 7 paise weaker at 85.20/$

The Indian Rupee ended its five-day winning streak on Tuesday, slipping slightly after a flat open, as rising crude oil prices and a firmer dollar index weighed on sentiment.

 

The domestic currency ended 7 paise weaker at 85.20 after closing at 85.13 against the greenback on Monday, according to Bloomberg data. The currency has gained nearly ₹1.5 in the last six sessions.   Despite today's muted movement and sideways range, the broader short-term view for the rupee remains positive, with any minor weakness likely to act as a support zone rather than a reversal, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. "The market is currently consolidating after the strong rally seen in the past sessions, and with no fresh domestic or global triggers today, the rupee stayed range-bound."

 

       

The political influences over the Fed’s independence, along with recessionary fears, have raised concerns, weighing further on investor sentiment and pushing the dollar Index lower, according to Amit Pabati, managing director of CR Forex Advisors. The dollar index is likely to face strong support near 98.00 levels and resistance at 99.50 levels, Pabari said.  

 

The dollar index — a measure of the value of the US dollar relative to a basket of foreign currencies — was up 0.17 per cent to 98.44, the lowest since April 2022. 

 

US President Donald Trump repeatedly called for “Mr. Too Late” Powell to cut interest rates immediately. The dollar index — a measure of the value of the US dollar relative to a basket of foreign currencies — was down 0.19 per cent to 98.08, the lowest since April 2022.  During Tuesday's session, weakness in the Chinese yuan squeezed Asian currencies, after the yuan's daily fix - set by the central bank - moved lower despite broader weakness in the greenback, according to reports. 

 

Meanwhile, foreign portfolio investors continued to buy equities for the fourth consecutive day on Monday. Global funds bought stocks worth ₹1,970.17, taking the four-day purchase to over ₹16,600 crore.  

 

Crude oil prices edged higher on Tuesday, a day after the commodity plunged amid concerns about the impact of the energy demand and the global economy. Brent crude oil was up 1.58 per cent to $67.31 per barrel, while WTI crude was up 1.40 per cent at 63.96 per barrel as of 3:45 PM IST.