Rupee Opens At Record Low Against US Dollar
The rupee faces strong resistance in the 84.10-84.20 range, according to an analyst.
Close view of Indian bank notes, rupee arranged for photograph.
The Indian rupee opened at a record low against the US dollar on Wednesday. The local currency was trading at Rs 84.077 against the greenback, compared to Tuesday's close at Rs 84.076.
The rupee faces strong resistance in the 84.10-84.20 range, with potential to drift toward the 83.80 level, said Amit Pabari, MD of CR Forex Advisors.
The currency market is likely to remain jittery over US presidential elections.
The rupee was trading at Rs 84.077 against the US Dollar.
The US dollar index, which measures the strength of the greenback against basket of six currencies, advanced 0.1% to 104.17, while the US 10-year bond yields moved 2 basis points higher to 4.23%.
"The rupee’s potential for appreciation appears modest, though the dollar Index is expected to ease from its recent highs," Pabari said.
In the medium term, the dollar index is anticipated to decline to the 100-102 range, as the Federal Reserve is expected to reduce rates by another 100 basis points in 2025. This scenario limits the rupee's potential for depreciation, particularly as the RBI actively manages its value around the 84.10 mark. As a result, the local currency is likely to remain range-bound in the near term, he said.
Brent oil was down 0.24% at $75.86 as an industry group signaled a modest rise in American crude inventories, and the US renewed efforts to secure a ceasefire in the Middle East.
