On February 5, the Indian rupee began five paise down against the US dollar at 87.1263, according to currency experts, as Asian stocks were poor. The local currency’s opening value against the US dollar was 87.1263, while its closing value against the US dollar was 87.0762.
Due to growing trade concerns between the two biggest economies in the world, investors were cautious, and Asian stocks pared their gains as Chinese shares opened lower.
As China’s market reopened on Wednesday following the Lunar New Year holidays, Hong Kong stocks declined and a measure of Asian stocks relinquished some of its gains. The yen appreciated versus the dollar, as Treasury yields trended upward.
The rupee is expected to stay erratic under global headwinds, ranging between 86.80 and 87.20, with 87.20 serving as a significant resistance level. A decline toward 86.50, however, would be possible if there is a break below 86.80.
Even as global headwinds continue to fuel volatility, the Indian rupee saw some support on February 4 due to alleviating liquidity shortages and tariff worries.
