Rupee opens 4 paise up amid fall in dollar index, crude prices

The rupee opened at 87.2375 against the US dollar.

The rupee opened almost 4 paise up on March 5 as the dollar index eased and Brent crude fell to a six-month low.

The local currency opened at 87.2375 against the dollar compared to the previous close of 87.2700.

The dollar index, which measure American currency's value against six major global peers, fell to 105.733 in the early trade. It ended the previous session at 105.743, easing from 106.743 the previous day.

The index has eased over concerns about slowing growth and the impact of tariffs on the US economy, which would likely outweigh any potential boost from the ramping up of levies on Canada, Mexico and China.

A MUFG report said markets have become increasingly concerned about the tariff impact on US economic growth, outweighing the risk of tariff-induced inflation. The Fed funds futures markets have priced in slightly more than 3 rate cuts in the rest of this year, while the US dollar has fallen 1.4 percent so far this week.

Brent crude fell after reports of OPEC+ plans to proceed with output increases in April and US tariffs on Canada, Mexico and China as well as Beijing's retaliatory tariffs.

Amit Pabari, managing director at CR Forex Advisors, said USD/INR is expected to trade in a range between 87.20-87.80. With 87.20 acting as a strong support, while 87.80 will act as a strong resistance.