Rupee Weakens Amid Volatile Market Conditions, Opens 24 Paise Lower at ?85.52

The Indian Rupee opened 24 paise weaker at ?85.52 against the US dollar on Thursday, reversing a three-day winning streak. This decline comes despite a continued easing in crude oil prices and a softer dollar index.?

Inflation Trends and Monetary Policy Outlook

India's wholesale price inflation cooled to a 13-month low of 0.85% in April, while retail inflation dropped to 3.16%, the lowest since July 2019. These figures have heightened expectations of a potential 25 basis point rate cut by the Reserve Bank of India in its June policy meeting.

Global Factors Influencing the Rupee

The dollar index eased by 0.19% to 100.84, following US clarifications on currency policy. Meanwhile, Brent crude prices fell by 2.22% to $64.60 per barrel, and WTI crude dropped by 2.31% to $61.69, amid reports of rising US crude inventories and geopolitical tensions.

Market Expectations and Currency Range

Analysts anticipate the Rupee to trade within a range of ?85.00 to ?85.75 in the near term, considering the current economic indicators and global market conditions.

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