Rupee Opens Higher At ₹95.17 Against U.S. Dollar As Asian Currencies Trade Mixed

The Indian rupee began Monday’s session 4 paise higher than its previous close of ₹95.21 per dollar. The move came as expectations of a Federal Reserve rate hike next month eased after the U.S. economy unexpectedly recorded a decline in jobs last month.

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Rupee Tracks Dollar And Oil Movements

The dollar index was around 99.65 in early trading, while crude oil prices remained elevated amid uncertainty over the reopening of the Strait of Hormuz.

Finrex said the rupee could remain sensitive to movements in the dollar and crude oil during the session. The brokerage noted that demand for dollars could emerge around ₹95 against the rupee, while exporters could look to sell the currency at higher levels.

The rupee’s movement is also being watched alongside the crude price, given India’s dependence on imported oil. Higher oil costs can increase demand for dollars from domestic importers.

Asian Currencies Move In Different Directions

Regional currencies lacked a common trend against the U.S. dollar. The Indonesian rupiah gained 0.15%, while the Philippine peso rose 0.21%. The Thai baht strengthened 0.17%, Taiwan dollar added 0.16%, China’s renminbi advanced 0.06% and the Malaysian ringgit gained 0.06%.

On the other side, the South Korean won declined 0.50%, making it the weakest performer among the currencies listed. The Japanese yen fell 0.18%, while the Singapore dollar slipped 0.09%.

The dollar index, which measures the U.S. currency against a basket of six major currencies, was little changed at 99.65 after remaining close to a six-week low.

Hormuz Developments Remain In Focus

The U.S. dollar traded slightly higher against several major currencies during early Asian trading as Iran and Oman had yet to reach a final agreement on reopening the Strait of Hormuz.

The waterway remains important for global energy shipments, and uncertainty around its reopening has kept crude prices and currency markets sensitive to developments in the Middle East. Brent crude was quoted around $84.45 per barrel in early trade.

For the Indian currency, the week ahead will bring several economic data releases from both India and the U.S. These include consumer price inflation and producer price data from the U.S., along with CPI and WPI figures from India.

The rupee will therefore remain exposed to movements in the U.S. dollar, crude price changes, domestic data and developments around the Strait of Hormuz. After opening at ₹95.17 per dollar, the currency’s subsequent movement will be closely linked to these factors during the trading session.