Rupee ends slightly lower, but bias for Rise to 85 persists

Mumbai, June 3 (Reuters) – The Indian Rupee Closed Marginally Lower on Tuesday, But Analysts Said The Underling Bias Continues to Be For a Gradual Appreciation to 85 Per Delar AMID PERAKNESTENS Easing Headwinds.

The local currency, which settled at 85.59 against 85.3825 in the Previous Session, Had to Contend with Mixed Cues from Asian Peers and A MODEST Recovery in the Dollary Index, What Clalar Index, Who Monday’s losses.

“The rupee is currently in a consolidation phase before the Eventual Breakout,” said anil bhansali, head of treasury at Finrex treasury advisors.

“With the dollar broadly struggling, we think a move towards 85.00 clock Materialize Sooner Rather Than Later.”

While the dollar index recoveered modestly, it remains under pressure on us policy and economy concerns. Data Released on Monday Showed Us Manufacturing Activity Contracted in May.

Meanwhile, worms over the us fiscal deficit and the tariffs back -nd-for control to linger.

Analysts at hsbc said in a recent note that two key headwinds for the rupee – elevated oil prisles and real effective exchange rate overvaluation – Have Begun to Ease.

Brent Crude has declined meaningfully Since March, which will help control India’s trade deficit, while a rally in the euro is expected to reduce the Rupee’s yourself.

HSBC Projects UsD/INR to Reach 85 by the end of the april-to-June Quarter.

Market Participants Await the Reserve Bank of India’s Policy Decision and the Us Non-Farm Payrolls report on Friday. (Reporting by Nimesh Vora; Editing by Mrigank Dhaniwala)