Rupee advances on trade deal optimism; opens higher at 85.60/$

Indian Rupee today: The domestic currency opened 11 paise higher at 85.60 against the dollar, according to Bloomberg

Indian Rupee advanced on Thursday following a decline in the crude oil prices and optimism over signing trade deals with the US. 

 

The domestic currency opened 11 paise higher at 85.60 against the dollar, according to Bloomberg. Asian currencies traded mixed during the session as caution loomed over the US reciprocal tariff deadline. 

 

The Indian rupee weakened on Tuesday, pressured by outflows related to HDB Financial allotment, oil companies, and importer dollar demand, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. 

 

The rupee is expected to open around 85.62 today, with an anticipated trading range of 85.35 to 85.95, Bhansali said. Upticks near the 86.00 level could offer opportunities to sell dollars, while any dip towards 85.50 may be used to buy, he said. 

 

   

The unit has depreciated by around 0.21 per cent in June and has fallen by 0.18 per cent in the first six months of the calendar year. 

 

Traders await clarity on the India–US trade deal and the upcoming US non-farm payrolls (NFP) data to assess the market’s next direction, which currently appears biased towards a move lower to 85.00, Bhansali said. 

 

Meanwhile, the US and Vietnam signed a trade deal that’ll levy a 20 per cent tariff on exports to America and a 40 per cent levy on goods deemed to be transshipped, US President Donald Trump said. Vietnam agreed to drop all tariffs on US imports, he said.

 

On Wednesday, Trump said that the US and India will soon finalise a trade deal with “much lower tariffs,” which would enable fairer competition between the two countries.  

 

Further, US private payrolls fell in June, strengthening the case for a Federal Reserve rate cut in the coming months.   ALSO READ: Gold price climbs ₹10 to ₹98,900; silver falls ₹100, trades at ₹1,09,900 

The dollar index traded marginally higher after the US-Vietnam trade deal. The measure of the greenback against a basket of six major currencies was up 0.02 per cent at 96.79. The index has fallen 10.86 per cent so far this year.

 

In commodities, crude oil fell after Wednesday's uptick as Iran suspended cooperation with the UN nuclear watchdog. Brent crude price was down 0.78 per cent at $68.57 per barrel, while WTI crude prices were lower by 0.79 per cent at 66.92, as of 9:00 AM IST.   

  ALSO READ: Gold price climbs ₹10 to ₹98,900; silver falls ₹100, trades at ₹1,09,900