Rupee opens 7 paise up at 87 against the dollar

Indian rupee

The rupee opened 7 paise up on August 21 at 87 against the US dollar after ending the previous session at 87.07.

"The India rupee lost a bit yesterday evening after it closed at 87.0650 but today's opening around 87 indicates the inflows and change in stance on the rupee since the last one week when it almost tested a new low at 87.90," said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.

Currency experts said traders will be closely tracking Federal Reserve chairman Jerome Powell’s speech at Jackson Hole, which will offer clues to the US central bank’s policy trajectory.

US President Donald Trump has asked Fed governor Lisa Cook to resign, citing allegations over mortgages she holds in Michigan and Georgia.

The move highlights his bid to assert greater influence over the central bank, a development that has the potential to unsettle markets and weigh on the dollar, said Amit Pabari, managing director at CR Forex Advisor.

Cook, for now, is in no mood to oblige Trump. “I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” Cook said in an emailed statement via a Fed spokesperson. “I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts.”

(With agency inputs)