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“Rupee Inches Up 15 Paisa to ₹87.73/USD in Early Trade amid Dollar Softness and Rate Anxiety”

Rupee vs dollar, INR USD exchange rate, rupee rises August 6,
Rupee vs dollar, INR USD exchange rate, rupee rises August 6,

 

IIE DIGITAL DESK : The Indian rupee gained modestly in early Wednesday trade, climbing 15 paise to ₹87.73 per U.S. dollar, recovering from a prior near-record low reached the previous day. The rise occurred amid broad weakness in the greenback and ahead of the Reserve Bank of India’s policy decision due later in the day .

Trade sentiment was cautious as traders awaited clarity on monetary policy. With the RBI’s Monetary Policy Committee meeting scheduled at 10 a.m. IST, markets were largely expecting the benchmark repo rate to remain unchanged at 5.50 percent. While most economists forecast a hold, some major banks—including the State Bank of India and ICICI Bank—have advocated for a rate cut to bolster growth .

Currency traders noted that although the rupee gained slightly from the previous day, broader headwinds persist. Rising trade tensions with the U.S., especially over India’s import of Russian oil and related tariff threats from then-U.S. President Donald Trump, have pressured the rupee, pushing it close to its record intraday low of ₹87.95 on Tuesday .

Official trading data showed that the rupee opened at ₹87.72 before moving within a range of ₹87.63 to ₹87.80 during early sessions, eventually settling at ₹87.73. Analysts view the modest rebound as a technical retreat rather than a shift in underlying risk sentiment .

Alongside policy anticipation, global cues influenced the mood. Most Asian peers were under pressure, yet the rupee managed to eke out gains, a sign of relatively resilient domestic positioning. Still, heightened volatility remains likely as markets brace for both domestic policy signals and geopolitical developments .

To wrap up, the rupee’s early uptick reflected a combination of a slightly softer U.S. dollar, cautious sentiment around RBI’s policy outcome, and ongoing trade frictions with the U.S. Investors and currency traders are closely watching whether the central bank will opt for dovish hints or maintain a neutral outlook in the face of external uncertainties.

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