Finance
The Indian rupee gave up early gains on Thursday, closing above the 86 mark as the dollar climbed amid uncertainty in US Federal Reserve leadership, making investors apprehensive.
According to Bloomberg, the native currency closed 14 paise weaker versus the dollar on Thursday, at 86.08. The rupee has depreciated by 0.54 percent in the current calendar year. The rupee plummeted alongside all other Asian currencies on Thursday as risk-off mood grew. Throughout the week, the currency traded primarily in the 85.70-86 range.
On Wednesday, Trump disputed allegations that he intended to dismiss Powell, after the idea was broached in a meeting with congressional Republicans and leaked to the media. Last month, US producer prices remained constant, bolstering anticipation that the Fed may lower interest rates at its upcoming meeting.
The dollar index, which measures the greenback against a basket of six major currencies, rose 0.31 percent to 98.69.
Meanwhile, excitement over a potential India-US trade deal remains high, with Trump voicing renewed confidence for a swift resolution, according to analysts.
Trump intimated that a trade deal with India may be similar to one reached with Indonesia, which currently faces a 19% tariff, implying that India may also suffer tariffs beyond the 10% level under the proposed interim accord.
Meanwhile, excitement over a potential India-US trade deal remains high, with Trump voicing renewed confidence for a swift resolution, according to analysts. Trump intimated that a trade deal with India may be similar to one reached with Indonesia, which currently faces a 19% tariff, implying that India may also suffer tariffs beyond the 10% level under the proposed interim accord.
Rupee traded weakly as the dollar index found support near the 98.70 mark, according to Jateen Trivedi, VP research analyst – commodity and currency at LKP Securities. “Weakness in domestic capital markets also weighed on the rupee. The currency continues to face resistance near the 85.50 levels and has struggled to hold above that zone. Going ahead, the rupee is expected to trade in a range of 85.75 to 86.25.”
Crude oil prices recovered from a three-day low as US data revealed a sharper-than-expected reduction in crude inventory. As of 3:35 PM IST, Brent crude prices remained unchanged at 68.49 per barrel, while WTI crude prices rose 0.18 percent to 66.50.
Source: BS
