Rupee advances amid drop in oil prices; opens 16 paise higher at 87.50/$

Indian Rupee today: The domestic currency opened 16 paise higher at 87.50 against the dollar, according to Bloomberg

The Indian Rupee traded higher in a holiday-shortened week amid a dip in crude oil prices and the dollar index as trades await tariff-related cues to drive the market. 

 

The domestic currency opened 16 paise higher at 87.50 against the dollar on Monday, according to Bloomberg. The rupee has depreciated by 2.4 per cent in the current financial year, whereas it has witnessed 2.2 per cent depreciation in the current calendar year.

 

The currency is expected to open with modest gains and trade in a range of 87.25–87.80, as markets adopt a wait-and-watch approach, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. 

 

 

US President Donald Trump said he plans to meet Russian President Vladimir Putin in Alaska on Friday to broker an agreement to end the war in Ukraine. Any ceasefire could be positive for India, as the additional 25 per cent tariff Trump levied on Russian oil purchases would be void. 

 

On the trade front, Trump stated that no further trade negotiations will take place with New Delhi until the tariff issue is resolved. The dollar index, the measure of the greenback against a basket of six major currencies, was down 0.13 per cent at 98.04.

 

The Rupee is expected to be vulnerable in the short term as the US President's 50 per cent tariffs have triggered a risk-off sentiment from foreign portfolio investors (FPIs). FPIs have sold equities worth ₹17,924 crore so far this month. 

 

Meanwhile, as the Reserve Bank of India (RBI) curbs rupee weakness by selling dollars, exporters may sell near-term receivables, while importers may look to buy cash or weekly positions at the day’s lows, Bhansali said.

 

In commodities, crude oil prices extended declines as traders looked to upcoming talks between Russia and the US. Brent crude price was down  0.48 per cent at 66.27 per barrel, while WTI crude prices were lower by 0.56 per cent at 63.52, as of 9:07 AM IST.

Week ahead

Globally, investors brace for the key US Consumer Price Index (CPI) and Core CPI data on Tuesday, followed by the crude oil inventory figures on Wednesday.

 

Thursday will see the release of the Eurozone’s GDP and industrial production data, Japan’s GDP figures, and China’s industrial production and unemployment rate. On Friday, the US will publish retail sales and industrial production data.