Finance
The Indian rupee fell on Thursday but stayed range-bound near its initial losses, as the US dollar rose after a federal judge ruled to suspend President Donald Trump’s ‘liberation day’ tariffs.
The native currency closed 16 paise worse at 85.52 against the US dollar, down from 85.36 on Wednesday, according to Bloomberg. The currency fell for the third day in a row, and it is on track to lose 1.2% of its value this month.
According to Amit Pabari, managing director of CR Forex Advisors, the dollar-rupee pair is still consolidating, with resistance near 85.70-85.90 and firm support at 84.90-85.10. “A breach on either side could pave a sharp movement in that direction.”
A panel of three justices from the US Court of International Trade in Manhattan delivered a decision agreeing with the opinion that Trump had illegally claimed an emergency law. As a result, the dollar index strengthened, allowing it to return to the 100 level, while Wall Street equities futures contracts rallied.
The dollar index, which measures the greenback against a basket of six major currencies, rose 0.13 percent to 100.00. With seesaw trade plans keeping investors on edge, the dollar index has lost 8% this year. According to Pabari, the dollar surged following the release of the most recent FOMC minutes, which were notably cautious. The dollar is projected to find resistance near 101.50-102.00, with immediate support at 99.50, he noted.
On the economic front, growth in India’s industrial production fell to an eight-month low of 2.7% in April, down from an upwardly revised 3.94% in March.
According to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, the market is currently consolidating within a range and is expected to do so in the future, owing to consistent capital inflows into the country and net equity purchases by foreign portfolio investors.
Meanwhile, crude oil prices rose following a federal court ruling against Trump’s tariffs. Brent crude prices were up 1.43 percent to $65.83 per barrel, while WTI crude prices were 1.44 percent higher at 62.73 as of 3:40 PM IST.
Sourcre: BS
