USD/INR advances to 86.53 as rupee weakens on risk-off sentiment

USD/INR opened 6 paise higher at 86.53, extending gains from Wednesday's close of 86.47 as the Indian rupee faced pressure from broad market uncertainty and geopolitical tensions. The dollar's strength against emerging market currencies accelerated amid risk-off flows, with foreign institutional investors pulling funds from Indian equities. The Reserve Bank of India's intervention near 86.60 provided temporary support, but underlying pressure persists. Oil prices rising 0.5% to $82.30/barrel added import cost concerns for the rupee. Technical analysis shows immediate resistance at 86.65 (monthly high), while support lies at 86.40. Market participants await India's trade balance data due Friday, which could influence RBI's stance. The rupee's weakness reflects broader emerging market vulnerabilities, with traders monitoring global risk sentiment and dollar index movements near 106.50.