Currency trading: The Indian rupee closed at 86.55 per dollar on Thursday, 19 paise weaker than Wednesday’s 86.36. Anuj Chaudhary, Research Analyst at Mirae Asset Sharekhan, says the Indian rupee declined due to the rise in US 10 Year Treasury yield and rise in crude oil prices. Demand from importers for the dollar also put pressure on the rupee. However, a weak US dollar and positive global equity markets kept the decline in check. The US dollar declined as US core CPI came in lower than expected, raising the possibility of two interest rate cuts in 2025.
Anuj Chaudhary further said that the rupee will remain weak due to the strength seen in the US dollar and rising prices of crude oil. Importers may continue to buy dollars, which may put further pressure on the rupee. Traders can take cues from retail sales and weekly unemployment claims data from the US. USDINR spot price is expected to trade between Rs 86.35 to Rs 86.75.