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The rupee is edging higher, but familiar resistance and support levels are expected to hold.

The Indian rupee rose on Thursday, following regional peers, as a new round of tariff threats by the White House failed to make a significant impact. Traders expect the local currency to remain in its familiar range for the near term.

The rupee closed at 85.59 at 12:20 pm IST, an increase of 0.1% over its previous closing of 85.6725.

The rupee is expected to hover between 85.40-86. This range has been settled in over the past couple of weeks as traders await the outcome of the trade negotiations with the United States.

India's talks with the U.S. continue despite Trump sending tariff letters to most regional economies. An Indian trade official announced on Thursday that a trade delegation will soon visit the U.S. for further discussions.

On Wednesday, U.S. president Donald Trump announced a tariff of 50% on U.S. imports of copper and a duty 50% on Brazilian goods. Both duties will begin on August 1.

Trump also sent tariff notices on August 1, 2018 to seven minor U.S. trade partners who exported only $15 billion worth of goods to the U.S. in the past year. This included a 20% tariff for goods from the Philippines.

The MSCI broadest index for Asia-Pacific stocks outside Japan rose 0.4%.

The dollar index was just below 97.5, while Asian currencies mostly rose between 0.1% and 0.4%.

ANZ, while the immediate response was muted in nature, said in a report that uncertain trade prospects and weaker growth expectations were likely to restrict portfolio inflows into the Asian region over the short term.

The dollar-rupee premiums on forwards remained unchanged, indicating little support for a rate cut this month. Most policymakers remain concerned about the inflationary pressures arising from tariffs. (Reporting and editing by Jaspreet K. Kalra)

(source: Reuters)