Rupee gains for sixth day on weak dollar; opens higher at 85.43/$

Indian Rupee today: The domestic currency appreciated 8 paise to open at 85.43 against the dollar, after closing at 85.51 on Wednesday

The Indian Rupee extended its gaining streak to its sixth day on Thursday amid lower crude oil and softer crude oil prices. 

 

The domestic currency appreciated 8 paise to open at 85.43 against the greenback, after closing at 85.51 on Wednesday, according to Bloomberg. The currency has gained 0.13 per cent so far this month. 

 

The Indian rupee, which gained in the previous session, is expected to open higher as the dollar index weakened further, according to Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP. However, Asian currencies remain range-bound, he noted. 

 

 

The rupee is likely to trade within a range of 85.25 to 85.75, with dips being bought, Bhansali said. "Importers may consider short-term hedging near 85.25, while exporters are advised to wait for levels above 85.75 to hedge." 

 

The dollar index trades slightly lower, a day after the US inflation came in lower than expected. The consumer price index, excluding the often volatile food and energy categories, increased only 0.1 per cent from April. Following the inflation print, calls for the Federal Reserve to slash rates came from all sides. 

 

However, trade tensions remained after President Donald Trump said he would set unilateral tariff rates within two weeks. This came after the Chinese and US agreed to defuse the trade tensions. China will supply rare earths and magnets “up front”, and the US will allow Chinese students into its universities as part of a trade agreement. 

 

Amidst all this, the dollar index, which measures the greenback against a basket of six major currencies, was down 0.24 per cent at 98.39. The dollar slid on Thursday amid signs of a softer US stance on tariffs and rising expectations of Fed rate cuts after weaker CPI data, Bhansali said.   Track LIVE Stock Market Updates Here

 

The US is reportedly preparing a partial evacuation of its embassy in Iraq and allowing military dependents to leave parts of the Middle East. Following these developments, oil prices shot up to their highest in more than two months. Brent crude price was down 0.50 per cent to $69.42 per barrel, while WTI crude prices were lower by 0.45 per cent at 67.84, as of 9:15 AM IST.