The Indian rupee opened weak against the US dollar on Monday, continuing its decline from Friday. It weakened by 9 paise to 86.18.
On Friday, the rupee had closed 49 paise weaker at 86.09 against the US dollar, compared to its previous close of 85.60 on Thursday. This fluctuation comes amid various global and domestic economic factors influencing the currency markets.
“Heightened geopolitical tensions in the Middle East underpin the US Dollar and create a headwind for the pair. China’s Retail Sales and Industrial Production were mixed. Traders now see an 80% chance of a Fed rate cut in September. For USD-INR, 85.75 acts as a support while 86.40 a resistance,” says Kunal Sodhani, head of treasury, Global Trading Centre, FX & Rates Treasury, Shinhan Bank India.
The greenback is also under pressure as the conflict between Israel and Iran intensified on Monday, marking the fourth consecutive day of hostilities. The escalation began on Friday when Israel launched airstrikes targeting Iran’s nuclear power plants. In response, Iran initiated airstrikes against Israel, further fueling the ongoing confrontation.
“FX Reserves rose $5.1 billion in the week ending June 6, to $696.6 billion. The rupee had weakened 49 paise to end at 86.09 on Friday, after trading in the 85.94-86.21 range intraday,” said India Forex and Asset Management Pvt.
US Yields are up about 7 basis points across the curve. The two-year yield is at 3.96% and the 10-year yield is at 4.41%. The dollar is steady against majors, India Forex noted.
. Read more on Economy & Finance by NDTV Profit.The rupee had weakened 49 paise to end at 86.09 on Friday after trading in the 85.94-86.21 range intraday. Read MoreEconomy & Finance, Markets, Business, Notifications
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