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Rupee Opens At Fresh Low Against US Dollar

The Indian rupee hit a fresh record low against the US dollar on Friday, tracking a strong dollar and spike in crude oil price on escalating conflict in West Asia.

The local currency depreciated three paise to hit an all-time low of Rs 83.575 against the greenback on Friday. It closed at Rs 83.54 on Thursday, according to Bloomberg data.

“Ongoing geopolitical tensions limit rupee gains, as the dollar could find support in case the situation worsens. The rupee’s range is expected to remain between 83.30 and 83.65,” Jateen Trivedi, research analyst at LKP Securities, said.

“Risk-off sentiment remains prevalent, with assets like gold, Yen, Swiss Franc, Brent oil and the USD gaining traction due to safe-haven demand,” said Amit Pabari, managing director at CR Forex Advisors.

Asian markets experienced another downturn as globally, investors turned cautious with a general hesitance to taking risks ahead of the weekend. Meanwhile, ongoing tensions in West Asia curbed any potential gains.

“Risk-off sentiments will keep the rupee on the weaker side,” said Anil Kumar Bhansali, head of Treasury and executive director at Finrex Treasury Advisors. He expected the rupee to open around Rs 83.70 after oil prices spiked due to the rise in tensions in West Asia.

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