Rupee Eases From Record Low Against US Dollar

The Indian rupee opened a tad higher on Thursday against the US dollar. The local currency started trading at 84.069, compared to previous day's record low close of 84.082. Intraday, it had weakened to an all-time low of Rs 84.085.

The rupee is expected to stay in the range of 84.00-84.20 today. The support lies at 84.03 and resistance at 84.15/20, as per analysts.

Foreign portfolio investors were equity sellers to the extent of Rs 5,685 crore a day prior and therefore bid for dollars, while the Reserve Bank of India continued to protect 84.08 and is expected to continue to do so today, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.

The dollar traded at a three month's high against major currencies on expectations of a slower Federal Reserve rate cut and growing bets of a second Trump presidency. The dollar index, which measures the strength of the greenback against a basket of six currencies, stood at 104.36 (down 0.07%) while US 10-year bond yield was steady but at its recent highs at 4.23%.

Brent crude oil prices edged higher by 1.27% to $75.91 per barrel and were on track to a weekly gain of 3% despite US inventories rising much more than expected. Worries also persist on Middle East tensions.