Rupee opens 9 paise weaker at 88.22/USD as dollar strengthens

Indian rupee

The Indian rupee opened 9 paise weaker at 88.2225 against the US dollar on September 19, tracking the continued rise of the USD index.

The dollar index, which measures the greenback's against a basket of six major currencies, rose to 97.341 in the early trade from 97.348.

"The rupee may have stumbled after its recent run, but the story is far from over. Supportive trade developments and firm domestic confidence suggest there is still room for appreciation. Key support is placed at 87.70 — a sustained break below this level could open the way toward 87.50 and, if momentum builds, even 87.20. On the flip side, resistance is likely to cap gains around 88.40," said Amit Pabari, managing director at CR Forex Advisors.

The price action in rupee has been 'whippy within a broad 88 handle', Reuters quoted a currency trader with a bank, as momentum quickly against the currency after analysts found Fed Chair Jerome Powell's comments during the press conference less dovish than the projections suggested.

The US jobless claims data too contributed to the selloff in US treasuries, after new applications for unemployment benefits fell last week, reversing the prior week's rise.

(This is a developing story, please check back for more details)