The rupee opened 9 paise up on July 24 as the dollar index eased. The currency opened at 86.33 against the dollar after closing the previous day at 86.42.
The dollar index, which measures the American currency against a basket of currencies, traded at 97.134. Its previous close was at 97.214.
"Exporters (are) getting a good chance to sell dollars for hedging, while importers need to wait for hedging, as rupee should gain despite the current headwind due to non-conclusive US-India trade deal when all other deals seem to be getting done," said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
India’s free trade agreement with the UK is set to make industrial inputs and consumer goods such as alcohol cheaper for Indian consumers but it could also disrupt existing trade flows from Western allies such as the US and Japan, a Moneycontrol analysis shows.
The government ratified the deal on July 22, a day ahead of Prime Minister Narendra Modi’s two-day trip to the UK where he is expected to formally sign the agreement. The deal, finalised earlier this year, is set to reduce tariffs on 85 percent of UK exports to India within a decade.
While the bilateral gains are considerable, the deal introduces fresh competition for other major exporters to India. The US, which exported $39 billion worth of goods to India in 2024, is expected to face competition in $1.24 billion worth of its shipments — roughly 3.2 percent of total exports to India.
"The rupee is expected to trade within a range of 85.80–86.70," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
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