Rupee began Wednesday on a weak note, opening at 90.25 against the US dollar, falling 0.07% or 2 paise, extending its downward momentum.Earlier on Tuesday, the currency had already slipped 6 paise to close at 90.23 against the US dollar, after dropping to an intra-day low of 90.30 at the interbank foreign exchange market. This followed a marginal uptick on Monday, when Rupee ended 1 paisa higher at 90.17. Market participants pointed to a combination of rising crude oil prices, firm metal prices and a cautious global environment as key factors weighing on the currency. Ongoing foreign fund outflows, driven by geopolitical tensions and weak equity markets, further pressured the rupee. Anuj Choudhary, research analyst at Mirae Asset ShareKhan, said the decline was linked to continous global risk aversion and geopolitical concerns. He added that weak domestic markets, continued FII selling and higher crude prices were also dragging the currency lower. “However, optimism on the India-US trade deal and rising odds of a rate cut amid weak labour market reports last week may support the rupee at lower levels. Any intervention by the central bank may also support the rupee,” Choudhary said. Forex analysts noted that sentiment improved marginally after the new US envoy to India, Sergio Gor, said on Monday that both countries remain actively engaged in finalising a trade deal. Dilip Parmar, Research Analyst at HDFC Securities, said the USD-INR pair is finding immediate support at 89.90, while resistance is placed at 90.40. “Short-term traders should watch the 89.90 level closely, as a move below it could trigger a short-term trend reversal,” he said. In global markets, the dollar index, which tracks the greenback against six major currencies, was up 0.09% at 98.95. Brent crude futures climbed 1.38% to $64.75 per barrel.
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