Currency trading: On Tuesday, the Indian rupee closed at a new record low of Rs 86.64 per dollar. At the same time, on Monday the rupee had closed at the level of 86.58 against the dollar. Anuj Chaudhary, Research Analyst at Mirae Asset Sharekhan, says the Indian rupee recovered from its all-time low due to a slight bounce in the domestic markets and a weak US dollar. India’s retail inflation has also declined to 5.22 percent in December. Whereas in November it was 5.48 percent. US dollar and crude oil prices softened on Thursday, providing some relief to the falling rupee. America’s 10-year bond has also fallen by about 0.4 percent.
He further said that it is expected that the rupee will remain weak because the strength of the US dollar and the weak trend in the domestic markets may again put pressure on the rupee. Crude oil prices remain high due to which inflationary pressure is increasing. Traders can take cues from US PPI data today and US CPI data due tomorrow. Further USDINR spot price is expected to trend between Rs 86.40 to Rs 86.85.
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Meanwhile, a State Bank of India (SBI) report said past experiences suggest that the “Trump tantrum” will be a short-term phenomenon for the Indian rupee (INR). In this, our currency is expected to stabilize after the initial shocks in the early days of Donald Trump’s presidency. If we look at past data, contrary to market sentiment, the rupee has been weaker under non-Trump or Democratic regimes. Previous data shows that the rupee has fallen by 29 percent against the dollar during Biden’s presidency. Whereas it had fallen by only 18 percent during Trump’s previous tenure.
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