Mumbai, 17 September (IANS). The Indian rupee opened at 87.82 against the US dollar on Wednesday at 87.82 due to fresh trade talks between India and the US.
The rupee closed at 88.09 after an increase of 7 paise in the afternoon trading last day. At the same time, today is a sign of opening of Rs 88 for the first time in two weeks.
Analysts say the rupee may face resistance around 88.20.
He said that despite support from bilateral trade talks, a decisive decline below 87.90 could open the way towards 87.50 or 87.20.
Meanwhile, the dollar index was trading at 96.73 with a gain of 0.11 percent, showing the strength of the dollar compared to a group of six currencies.
In futures trading, Brent crude was trading at $ 68.33 per barrel with a decline of 0.20 percent.
Amid reports of recession in the US, the softening of the dollar was supported by the currencies of the emerging markets.
Mark Zandi, the chief economist of the credit rating agency Moody’s, recently said that the United States state-level figures show that the country is on the verge of recession.
He said that the American economy is very close to the recession based on expenses, jobs and data in the manufacturing sector.
He further said that he was concerned due to the impact on the profits of American companies and the problems in the American housing market.
In addition, analysts credited the increase in the rupee to a fresh optimism regarding bilateral trade talks, which could improve investors’s trust and economic relations between the two countries.
However, despite the positive attitude, the market sentiment was cautious. Investors are keeping a close watch on the policy meeting of the US Federal Reserve, which is expected to cut interest rates. The stance of the fed can affect global capital flow and currency values.
Analysts have indicated that sudden change in interest rates may increase instability. At the same time, a soft -stamped comment may cause a decline in the dollar, while the aggressive trend can improve the dollar.
-IANS
SKT/
