Rupee opens 11 paise down at 86.26 as dollar index trades high again

Indian Rupee

The rupee opened 11 paise down on July 21 as the dollar index traded high. The currency opened at 86.26 against the dollar after ending the previous session at 86.15.

The dollar index, which measures the American currency against a basket of currencies, traded at 98.45 in the morning trade. Its previous close was at 98.48.

US Federal Reserve chair Jerome Powell's remarks will be closely tracked on July 22 after facing criticism from US President Donald Trump, who, for now, seems to have backtracked on the threat to sack the  central bank boss.

The odds of a US rate cut in September are around 53 percent, CME's FedWatch tool shows.

Anil Kumar Bhansali, head of treasury and executive director, at Finrex Treasury Advisors LLP, said the Indo-US trade deal is still caught in differences over agriculture and automobiles.

Powell’s remarks will be of interest as the US president has criticised him for not cutting rates or resigning.

"For USDINR, 85.80 acts as a support while 86.40 a resistance," Kunal Sodhani, Head of Treasury at Shinhan Bank, said