The rupee weakened against the US dollar at open on Friday, as most traders flock to the safe-haven currency on rising uncertainty over tariff outlook. US President Donald Trump has changed the date to levy 25% tariff on Canada and Mexico several times, leaving market participants across the globe confused.
The rupee opened 12 paise weaker at 87.32 against US Dollar. The Indian unit settled flat at 87.20 a dollar on Thursday’s session.
The dollar index rose 0.14% to 107.40 as Trump said that the tariff on Canada and Mexico will come into effect from March 4. The troubled communication from the US President himself cast a fog over the tariff element, triggering a steep selloff in gold, said Kunal Sodhani, vice president, Global Trading Centre, Shinhan Bank.
US Personal Consumption Expenditure and GDP data came in strong. Traders remain wary of potential US tariffs on Canada, Mexico, and the European Union, fueling global uncertainty. For USDINR, 87.00 acts as a resistance, while 87.60 as support, Sodhani said.
On the domestic front, traders will monitor the impact of the Reserve Bank of India’s $10-billion dollar-rupee swap, which is scheduled to take place on Friday. USDINR forward premium is expected to fall.
“All eyes will be on the Reserve Bank of India, which is expected to intervene on weakness and allow movement within the above range only. Sentiments on all fronts remain weak, keeping rupee also weak in the coming days. Today, it is expected to open at 87.33 and should remain within a range of 87-87.50,” said Anil Kumar Bhansali, head, treasury and executive director, Finrex Treasury Advisors LLP.
. Read more on Economy & Finance by NDTV Profit.Traders will also monitor how the Reserve Bank of India’s $10-billion dollar-rupee swap plays out in Friday’s session. Read MoreEconomy & Finance, Markets, Notifications
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