The Rupee opened 6 paise weaker at 86.9425 per Dollar against the previous close of 86.88 and appears to be within striking distance of breaching the crucial 87. It hit an intraday low of 86.9675 per Dollar so far and is currently trading at 86.96.
Amit Pabari, MD, CR Forex Advisors, observed that the central bank’s measures, coupled with the absence of anticipated U.S. tariffs, have alleviated trade-related concerns, allowing emerging market currencies like the rupee to stay firm.
However, the trade deficit and RBI’s plan to purchase bonds worth ₹40000 crore (which will further boost the rupee’s liquidity creating pressure on the currency) are challenges for the Rupee.
“Given these dynamics, the USD/INR pair is expected to trade within the 86.60–87.20 range. The 87.20 level is emerging as a strong resistance, while 86.50 serves as a critical support zone. A decisive breach below 86.50 could pave the way for 85.80–86.00 levels, adding to the rupee’s strength,” Pabari said.
