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Bloomberg Quint

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Image Credit: Bloomberg Quint

Rupee Opens Flat Against US Dollar As Israel-Iran Reach Impasse

  • The rupee opened flat against the US dollar at 86.07, with expectations to trade between 85.75 and 86.30 for the day.
  • Brent oil prices rose to $74.04 per barrel due to US president's warning on Israel-Iran conflict, causing concerns about supply disruptions.
  • Conflicting reports on Iran seeking a ceasefire and soft economic data from China also influenced oil prices.
  • The dollar index reached 98.21, with the Euro at 1.1553 and GBP at 1.3566.
  • Bank of Japan expected to maintain policy rates, potentially slowing bond purchases next year amid economic uncertainties.
  • Rupee touched 85.75 on Monday but fell to 86.12 after Trump's comments on Tehran evacuation.
  • If rupee surpasses 86.20, importers might face challenges as dollar could rise to 86.70.
  • Reserve Bank of India selling dollars above 86.20 has stabilized the rupee.
  • Oil prices are crucial for the rupee due to foreign investments and companies buying dollars for outflows.
  • Tuesday's trading range depends on conflict progression and RBI's actions in the market.

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