Since Trump registered his win in November in the US election, the rupee depreciated by 3% against the US dollar, breaching its all-time low Rs 86 per dollar mark in January
The Indian rupee modestly appreciated on Monday against the US dollar, ahead of President-elect Donald Trump's inauguration later today, as dollar declined slightly against Asian currencies. The rupee appreciated 5 paise to close at 86.55 (provisional).
Trump's inauguration is scheduled to begin at 10:30 PM IST. He is then scheduled to deliver his inaugural address, typically setting the tone for the presidency, after the oath is administered in the presence of US Chief Justice John Roberts.
The rupee closed at 86.55 against the U.S. dollar. It settled at 86.60 on Friday session.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, told PTI that the rupee strengthened against the greenback on the weak tone in the US Dollar index and positive domestic markets. Overnight decline in crude oil prices also supported the rupee.
"We expect the rupee to remain weak on underlying strength in the US Dollar and importer demand for Dollars. However, any further correction in crude oil prices and extended gains in the domestic markets may support the rupee at lower levels," Choudhary said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading down 0.17 per cent to 109.16. Meanwhile, Asian currencies were mostly higher between 0.1% and 0.7%.
The offshore yuan climbed to a two-week high, bolstered by a cordial phone conversation between former U.S. President Donald Trump and Chinese President Xi Jinping, along with stronger-than-expected fourth-quarter Chinese economic data.
The US markets will remain closed on Monday due to the Martin Luther King Junior Day holiday.
Since Trump registered his win in November in the US election, the rupee depreciated by 3% against the US dollar, breaching its all-time low Rs 86 per dollar mark in January.
Earlier, talking to Outlook Business, experts pointed out a strong dollar supported by high US yields due to Fed rate repricing and the variance in Donald Trump policies are partly behind the rupee's weakness. They also said that the rupee is expected to depreciate further mostly during the first half of the next financial year.
A report by State Bank of India (SBI) revealed that "Trump Tantrum", referring to the impact of Donald Trump's presidency on the Indian rupee, is likely to be a short-term phenomenon.
"Contrary to market perceptions, the rupee appears more vulnerable under a non-Trump or Democratic regime," the report stated.
With inputs from PTI