Rupee Gains 19 Paise To 95.57 Against U.S. Dollar As Greenback Slides

The rupee opened at ₹95.57 per U.S. dollar on Thursday, strengthening 19 paise from the previous close of ₹95.76. The move came after the dollar weakened following steps by the U.S. Treasury aimed at easing pressure in the bond market.

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Dollar Weakness Supports Rupee

Finrex said the rupee was expected to open around ₹95.57 after the dollar index declined to 98.80. The firm also pointed to crude oil prices remaining above $91 a barrel as a factor that could continue to weigh on the currency.

The Reserve Bank of India was active in the foreign exchange market on Wednesday, Finrex said, and could remain present at certain levels during Thursday’s session. Such intervention could limit sharp movements in the rupee.

Finrex expects exporters to sell dollars near ₹95.75, while importers are likely to use declines in the rupee to make purchases.

Asian Currencies Trade Mixed

Asian currencies moved in different directions against the U.S. dollar on Thursday.

The Malaysian ringgit led gains, rising 0.359%. The Philippine peso advanced 0.315%, while the Taiwan dollar gained 0.248%. The Chinese renminbi strengthened 0.190%.

The Indonesian rupiah and Thai baht also moved higher, gaining 0.123% and 0.125%, respectively.

The South Korean won moved lower by 0.329%, while the Japanese yen declined 0.189%. The Singapore dollar slipped 0.063%.

The mixed performance across Asian currencies reflected different movements against a weaker U.S. dollar.
U.S. Dollar Near Three-Month Low

The U.S. dollar remained close to a three-month low on Thursday as markets assessed measures announced by the U.S. Treasury to ease pressure in the bond market.

The Treasury’s move came after yields on longer-dated U.S. government bonds reached their highest level since 2007. The dollar subsequently recorded steep losses against major currencies.

The rupee’s opening move also came against a backdrop of elevated crude prices. For India, which relies heavily on imported crude, the crude oil price remains an important factor for the currency because higher import costs increase demand for dollars.

Rupee Price In Focus

The rupee price opened at ₹95.57 per dollar, compared with ₹95.76 at the previous close. The domestic currency’s performance through the session will be influenced by movements in the dollar, crude oil price and activity in the foreign exchange market.

The RBI’s presence in the market, along with dollar demand from importers and supply from exporters, will remain relevant to trading conditions. For now, the rupee has started the session on a firmer footing after the dollar’s decline, while oil prices above $91 a barrel continue to provide a counterweight.