MUMBAI– The Indian rupee opened stronger on Wednesday, trading at 87.82 against the U.S. dollar, its first opening below 88 in two weeks, supported by renewed trade discussions between New Delhi and Washington.
The rupee had closed Tuesday at 88.09 after a modest intraday gain of seven paise. Analysts said the currency is likely to face resistance around 88.20, while a decisive move below 87.90 could pave the way toward 87.50 or even 87.20.
The dollar index, which measures the greenback against a basket of six major currencies, edged up 0.11 percent to 96.73. Brent crude futures slipped 0.20 percent to $68.33 per barrel.
Emerging-market currencies found support as the dollar softened amid growing concerns about a U.S. recession. Mark Zandi, chief economist at Moody’s, said state-level data indicates the American economy is “on the edge of recession,” citing weak spending, manufacturing, and jobs data. He also warned that U.S. tariffs are eroding corporate profits while the housing sector continues to struggle.
Analysts noted that optimism over bilateral trade talks between India and the U.S. helped lift the rupee by boosting investor confidence. Still, market sentiment remained cautious as traders awaited the outcome of the U.S. Federal Reserve’s policy meeting, where a rate cut is widely expected.
A dovish Fed stance could pressure the dollar further and strengthen the rupee, while a hawkish surprise might trigger volatility and a pullback in emerging-market currencies, analysts said. (Source: IANS)
