Rupee Opens Higher By 5 Paise As Stable Crude Prices Support Sentiment

The Indian rupee saw a slight strengthening to begin the day on June 29, helped by the stability in the price of crude oil amid heightened tension between the U.S. and Iran. The domestic currency opened at 94.35 against the U.S. dollar, gaining 5 paise from its previous close of 94.40.

According to Finrex, the rupee is expected to trade in the 94.20-94.75 range during the session, with crude oil prices remaining largely stable even after fresh geopolitical developments in West Asia.

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Finrex said exporters are likely to step up dollar sales if the rupee weakens towards the 94.75 level, while importers may continue purchasing dollars on declines, keeping activity balanced during the day.

Asian Currencies Trade Mixed

Regional currencies delivered a mixed performance against the U.S. dollar in early trade. The Malaysian ringgit was the strongest performer, rising 0.289%, followed by the Indonesian rupiah, which gained 0.117%. The Taiwan dollar gained 0.038%, while the Philippine peso was up 0.026%.

Among the weakest performers were the South Korean won, which fell by 0.338%, the largest decline in the region. The Thai baht slipped 0.126%, while the Chinese renminbi, Singapore dollar and Japanese yen recorded marginal losses of 0.044%, 0.039% and 0.019%, respectively.

Dollar Remains Firm

The U.S. dollar continued to hold firm as investors remained focused on the strength of the U.S. economy and interest rates expectations. Market participants are also awaiting key U.S. inflation data, which could influence the Federal Reserve’s policy outlook.

Although the U.S. and Iran have agreed to halt attacks and resume discussions this week, caution persists in global financial markets. The uncertainty has supported demand for the dollar while limiting gains in several regional currencies.

The rupee’s movement during the session is expected to remain influenced by crude oil prices, the direction of the U.S. dollar, foreign fund flows and developments in overseas markets. With oil prices showing limited volatility and the domestic currency opening on a firm note, investors will continue to monitor global cues for further direction.