Rupee Opens Lower At 69.25

Rupee in Friday's session opened at 69.25, down 19 paise after closing at 69.06 per US dollar.

The weakness in the rupee came in as dollar surged to a 2-month peak after Fed cut interest rates and at the same time made a clarification that a long rate cut cycle may not be imminent. Notably, there is a possibility that in days to come, dollar may strengthen further.

Nonetheless, even though dollar surge is casting a downward pressure on the rupee, it will be supported around levels of 68-71 per US dollar due to the strong real yield on Indian bonds which maintains FPI flows in the debt market.

Oil prices also surged after Trump imposed additional tariffs on Chinese imports further aggravating trade war situation that has weighed heavily globally.

Meanwhile, equities market in India tracking broader markets will open with a negative bias.

GoodReturns.in