Rupee Opens Little Changed Amid Global Currency Volatility

The Indian rupee opened flat at 87.60 against the US dollar on Friday, holding steady despite heightened volatility in global currency markets.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, the rupee is expected to trade within a range of 87.35 to 88.00 through the day. “Exporters should hedge their receivables, while importers may wait to buy at the day's lowest level on a cash basis,” he advised.

The rupee briefly touched a low of 87.75 before closing marginally stronger at 87.59, aided by the Reserve Bank of India’s intervention in the offshore non-deliverable forward (NDF) market. “The RBI appears to be actively managing the rupee’s decline, and if this support continues, we may see levels closer to 87.00 in the near term,” Bhansali added

He further said, globally, currency markets are reacting to a slew of developments. The Japanese yen fell to a four-month low of 150.88 against the dollar, prompting concern from Japan’s Finance Minister, who called for currency movements to reflect economic fundamentals.

The dollar index climbed to 100.13, bolstered by fresh US tariffs imposed by former President Donald Trump on several trading partners, including a hike from 31% to 39% on Swiss exports, which pressured the Swiss franc, he added.