Rupee Opens Little Changed Against U.S. Dollar
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“Market participants are trimming their bets on Fed rate cuts, optimistic ISM and S&P Global reports resulted in (a) surge in US Treasury yields and dollar index,” said Kunal Sodhani, vice president of Shinhan Bank. “Dollar index broke (the) crucial resistance of 104.85 and now test 105.60 levels. Brent crude prices (are) on the rise too”
“For dollar/rupee, Rs 83.30 will act as a support and Rs 83.55 as a resistance,” Sodhani said.
The rupee weakness has been observed only during significant events like geopolitical strains, financial meltdown, abrupt spikes in gold prices due to risk or substantial dollar strength—circumstances that are not prevalent currently. The 10-year US Treasury bond yields are also controlled, signifying no caution, according to Amit Pabari, managing director at CR Forex Advisors.
“Therefore, we expect fundamental economic factors to exert greater influence on the currency, potentially driving appreciation towards levels ranging from Rs 83.00 to Rs 82.90,” Pabari said.
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