The US dollar index, which measures the strength of the greenback against basket of six currencies, advanced 0.1% to 104.17, while the US 10-year bond yields moved 2 basis points higher to 4.23%.
“The rupee’s potential for appreciation appears modest, though the dollar Index is expected to ease from its recent highs,” Pabari said.
In the medium term, the dollar index is anticipated to decline to the 100-102 range, as the Federal Reserve is expected to reduce rates by another 100 basis points in 2025. This scenario limits the rupee’s potential for depreciation, particularly as the RBI actively manages its value around the 84.10 mark. As a result, the local currency is likely to remain range-bound in the near term, he said.
Brent oil was down 0.24% at $75.86 as an industry group signaled a modest rise in American crude inventories, and the US renewed efforts to secure a ceasefire in the Middle East.
