Rupee opens 26 paise down at 85.61 as dollar recovers

Indian rupee

The rupee opened 26 paise down on May 28 as the dollar gained on improved US consumer confidence even as trade uncertainties remain.

The local currency opened at 85.61 against the dollar after ending the previous session at 85.25.

The dollar index, which measures the greenback's strength against a basket of six major currencies, found support following better-than-expected consumer confidence data. The index, however, is still around 9 percent down this year on US trade policy uncertainty and fiscal concerns.

American consumer confidence rebounded in May, ending a five-month slide, supported by a temporary truce in the US-China trade war, latest data shows.

On May 27, the conference board said consumer confidence index rose 12.3 points in May to 98, up from April's 85.7, its lowest reading since May 2020.

The rupee slipped during the day after the sell-off in the Indian equities as the markets rode a rollercoaster.

The Sensex swung nearly 1,300 points in a dramatic session that saw bulls and bears battle for control.

Heavy selling in auto, IT, and FMCG stocks dragged the Nifty and the Sensex off their two-day winning streak. Yet, amid the chaos, the broader market held its nerve, ending marginally higher through a choppy session and offering a sliver of stability in an otherwise volatile day.

During the day, the rupee is expected to move in the 85.25-85.65 range against the dollar, Abhishek Goenka, founder & CEO, India Forex Asset Management-IFA Global, said.