The rupee opened at 86.19 per dollar, 10 paisa weaker from its previous close of 86.08/$1 as high crude oil prices continued to weigh on the currency and as Israel and Iran continued attacks over the weekend. The currency traded in the range of 85.95/$1 to 86.23/$1 on Monday.
“There was dollar demand seen from foreign investors and oil companies to cover their oil payments for the next few days as oil prices were up since the Iran-Israel confrontation began,” said Anil Bhansali, head of treasury at Finrex Treasury Advisors.
But a mildly softer dollar index at 97 levels from 98 seen at the start of the day helped contain losses.
Intervention by the Reserve Bank of India above 86.20/$1 levels also helped ease the pressure on rupee, traders said.
In the coming days, weakening bias is expected to continue for the rupee due to geopolitical uncertainties.“There may continue to remain some pressure on the rupee till the point the geopolitical uncertainties prevail. For USD-INR, immediate support comes at 85.60 levels while a break above 86.23 may open doors for 86.50 levels,” said Kunal Sodhani, head of treasury, forex and rates at Shinhan Bank India. Meanwhile, traders are looking forward to the developments on the trade deal between India and the US.
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