Rupee Opens Higher Against U.S. Dollar As Softer Crude Price Supports Sentiment

Indian rupee rose to 29 paise against the U.S. dollar on Friday, July 31.The domestic currency started the session at 95.39 per U.S. dollar, compared with the previous close of 95.68, as a weaker U.S. dollar and a decline in the global crude price improved sentiment in the foreign exchange market.

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Softer Dollar Lifts Domestic Currency

The rupee found support after the U.S. dollar recorded its biggest single-day decline in three months. The softer greenback, coupled with easing oil prices, reduced pressure on the domestic currency at the start of trading.

According to Finrex, the rupee was expected to open around 95.42 per U.S. dollar, helped by lower crude price levels and weakness in the dollar index. Brent crude price eased to $85.75 per barrel, while the dollar index slipped to 100.17, providing a favourable backdrop for emerging market currencies.

Expected Trading Range

Finrex said the rupee is likely to trade in the 95.20-95.75 range during the day. The firm added that exporters may consider selling U.S. dollars during intraday moves towards the 95.65-95.75 band, while importers could look at buying dollars if the rupee strengthens towards the 95.20 level.

Asian Currencies Show Mixed Performance

Currency markets across Asia traded on a mixed note against the U.S. dollar. The Malaysian ringgit, Chinese yuan, Philippine peso, Taiwan dollar and Thai baht registered gains, while the South Korean won, Japanese yen, Indonesian rupiah and Singapore dollar weakened.

Among regional currencies, the Malaysian ringgit recorded the strongest appreciation, whereas the South Korean won posted the sharpest decline during early trading.

Japanese Yen Remains Under Pressure

The Japanese yen extended its losses as market participants assessed Tokyo’s response following its coordinated intervention in the currency market ahead of the Bank of Japan’s policy decision.

The U.S. dollar rose as much as 0.8% to 160.690 yen in early trade after falling 2.4% in the previous session, marking its largest one-day decline since January 2023.

The rupee’s early gains reflected favourable global cues, including a softer U.S. dollar and lower crude price levels. Currency markets are expected to remain focused on global developments, movements in oil prices and domestic central bank actions through the remainder of the trading session.