The Indian rupee opened at a record low against the US dollar on Wednesday, trading at ₹84.077 compared to Tuesday’s close of ₹84.076. The rupee faces strong resistance in the ₹84.10-84.20 range, with the possibility of drifting toward the ₹83.80 level as market uncertainty persists.
The rupee is expected to remain volatile, influenced by global events such as the US presidential elections. The US dollar index, which measures the greenback’s strength against six major currencies, rose by 0.1% to 104.17. Meanwhile, US 10-year bond yields increased by 2 basis points to 4.23%.
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The dollar index could decline to 100-102 in the medium term as the Federal Reserve may cut rates by another 100 basis points in 2025. This outlook limits the rupee’s depreciation potential, especially with the RBI actively managing the currency near the ₹84.10 level.
Despite global uncertainties, the rupee is expected to remain range-bound soon, as the RBI’s interventions help stabilise its value. A sharp depreciation is unlikely, barring any unforeseen
global economic shocks or significant shifts in US monetary policy.
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Brent oil prices dipped by 0.24% to $75.86, influenced by a modest rise in American crude inventories
and renewed US efforts to mediate a ceasefire in the Middle East. These factors continue to affect global markets and currency movements.
