Indian rupee opened five paise down on February 5 at 87.1263 against the US dollar amid weak Asian equities, currency experts said.
The local currency opened at 87.1263 against the US dollar, as compared to 87.0762 at previous close against the greenback.
Asian equities trimmed their gains after Chinese shares opened lower as caution prevailed among investors with trade tensions rising between the world’s two largest economies.
Hong Kong equities fell while a gauge of Asian shares gave up some of its advance as China’s market reopened Wednesday after Lunar New Year holidays. Contracts for US equities edged lower as Google’s parent Alphabet Inc. and Advanced Micro Devices Inc. tumbled in extended trading. Treasury yields edged higher and the yen gained against the dollar.
According to Amit Pabari, managing director at CR Forex Advisors, the rupee is likely to remain volatile amidst global headwinds, fluctuating between 86.80 and 87.20, with 87.20 acting as a strong resistance. However, a break below 86.80 could clear the path for a further slide toward 86.50.
On February 4, Indian rupee got some support due to easing tariff uncertainties and easing liquidity deficits even as global headwinds keep volatility alive.
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