Indian rupee opened weaker against the against the U.S. Dollar on Friday after oil prices experienced an uptick due to escalating tensions in the Middle East.
UK Prime Minister Rishi Sunak approved joint military actions with the US against Houthi rebels in Yemen in response to their assaults on vessels in the Red Sea.
The local currency depreciated five paise to Rs 83.08 against the greenback. It closed at Rs 83.03 on Thursday, according to Bloomberg data.
Reliance Securities expects the rupee to trade between Rs 82.9400 and Rs 83.1600 on Friday.
“Indian rupee is expected to remain in a narrow range as in-flows are countered by dollar buying by oil companies and possibly RBI. The expected range is Rs 82.90-83.20,” Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
“Headline and core CPI from December came in higher than expected. DXY and yields initially bounced and later cooled off as well. Fed’s Goolsbee commented that 2023 was a “hall-of-fame” year for inflation reduction,” Kunal Sodhani, vice president of Shinhan Bank said.
“For dollar/rupee, Rs 82.90 will act as a support and Rs 83.20 as a resistance,” he said.
