The Indian rupee strengthened at the open on Monday, amidst additional 25% tariff by United States President Donald Trump on India and the US-Russia talks on Aug. 15.
The local currency opened 13 paise stronger at 87.53 against the US dollar on Monday compared to its closing at 87.66 against a dollar on Friday.
The immediate trading range is seen between 87.25 and 87.80, said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
The Indian rupee was expected to open with small gains today at 87.51, while markets are in a wait and watch mode for US and India CPI inflation and the US-Russia talks on August 15 which could solve India’s problem of additional 25 bps tariffs by US if a ceasefire happens between the two nations, said Bhansali.
Meanwhile as RBI protects weakness in rupee by selling dollars exporters may sell their near term receivables and importers may buy cash/weekly positions at the lows for the day, he added.
Brent oil prices fell to $66.25 per barrel in Asian trade on Monday morning extending the steep declines from last week as traders looked to upcoming talks between Russia and US heralding a cooldown in the Ukraine conflict.
“Soft inflation data from China also weighed amid middling signs of economic improvement in July. The print couples with host of weak economic readings in recent weeks, kept oil markets largely negative on future demand,” he said.
