Rupee Opens 5 Paise Higher At 95.66 Against U.S. Dollar

The Indian rupee began Friday’s session at ₹95.66 per U.S. dollar, gaining 5 paise from Thursday’s close of ₹95.71. The move came despite Brent crude trading at elevated levels and steady demand for dollars from importers seeking to hedge their foreign currency exposure.

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Rupee Holds Near Recent Range

Finrex had expected the rupee to open around ₹95.71 per dollar, while noting that higher oil prices could remain a headwind for the currency. Brent crude was trading near $93.73 a barrel, while the Dollar Index had edged up to 98.78.

During the session, dollar purchases by oil companies and other importers are expected to remain a factor for the rupee. Finrex said possible dollar sales by the Reserve Bank of India could help contain downward pressure on the currency.

Exporters are also expected to sell dollar cash deposits, which could restrict a stronger move in the rupee around ₹95.80. Importers, meanwhile, are likely to remain buyers when the dollar softens.
The rupee’s opening level also comes as crude oil prices remain closely watched by the domestic market. Asian

Currencies Mostly Gain

Most Asian currencies moved higher against the U.S. dollar during the session. The South Korean won recorded the strongest gain in the region, rising 0.94%, followed by the Indonesian rupiah, which advanced 0.518%.
The Taiwan dollar gained 0.232%, while the Singapore dollar rose 0.134%. The Thai baht strengthened 0.113%, and the Japanese yen added 0.063%. The Chinese renminbi edged up 0.024%.

The Philippine peso moved in the opposite direction, falling 0.065%, while the Malaysian ringgit declined 0.01%.

Dollar Set For Weekly Decline

The U.S. dollar remained under pressure on Friday and was headed for a weekly decline. Market focus remained on the U.S. Treasury’s bond-buyback initiative, which has been viewed as a temporary measure to ease pressure in the longer-dated bond market.

Fresh concerns about greater government intervention in financial markets also weighed on the dollar, keeping the currency near recent lows.

For the domestic market, the rupee’s performance through the session will remain linked to movements in crude oil, dollar demand from importers and any intervention by the central bank. The  share price keyword is not applicable to this currency-focused update.