Rupee slips 16 paise to 88.01 against US dollar amid Fed outlook

The rupee weakened 16 paise to 88.01 against the US dollar on Thursday, tracking a stronger greenback and Fed rate outlook. While equities rallied, traders await India-US trade talks, as Commerce Minister Piyush Goyal projected 6% export growth this year.

Mumbai: The rupee depreciated 16 paise to 88.01 against the US dollar in early trade on Thursday, as traders assessed the US FED outlook following a rate cut.

The US FED reduced rates by a quarter point as expected and indicated that it will steadily lower borrowing costs for the rest of the year.

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At the interbank foreign exchange market, the rupee opened at 87.93, then lost ground and touched an early low of 88.01 against the US dollar, registering a decline of 16 paise over its previous close.

On Wednesday, the rupee appreciated 24 paise to close at 87.85 against US dollar.

“Expect a range-bound movement in the pair on Thursday after the passing over of a major event while we await for the outcome of US-India trade tariffs meeting. Thursday’s opening is a tad weaker after a rise in the US Dollar index and a fall in Asian currencies,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.17 per cent to 97.03.

Brent crude, the global oil benchmark, was trading 0.12 per cent lower at USD 67.87 per barrel in futures trade, On the domestic equity market front, Sensex rallied 447.5 points to 83,141.21 in early trade, while the Nifty climbed 118.7 points to 25,448.95.

Foreign Institutional Investors sold equities worth Rs 1,124.54 crore on a net basis on Wednesday, according to exchange data.

Meanwhile, Union Commerce Minister Piyush Goyal on Wednesday expressed confidence that India’s exports would grow by around 6 per cent this year compared to the corresponding period in 2024.

Underscoring the country’s strong performance in global trade despite challenges, the minister said discussions on free trade agreements (FTAs) were advancing with several countries.

“India’s exports would grow by around 6 per cent this year compared to the corresponding period last year. I believe we will end the year on a positive note,” Goyal told reporters here, adding that discussions on free trade agreements (FTAs) were advancing with several countries.