Rupee Slips At Open As Stronger Dollar, Mixed Asian Currencies Weigh

The Indian rupee began Tuesday’s session with modest losses against the U.S. dollar, reflecting weakness across some Asian currencies amid a firmer dollar index and higher crude oil prices. The domestic currency opened at 94.57 per U.S. dollar, down 4 paise from the previous close of 94.53.

According to Finrex, the rupee is expected to trade in the 94.20-94.75 range during the session. The report noted that the currency may remain under pressure as underlying market flows continue to favour the dollar despite intermittent gains in the rupee.

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Dollar Strength Keeps Pressure On Rupee

Finrex said the 94.20 level has emerged as an important support for the dollar against the rupee. Although the currency pair briefly moved below that level on a few occasions, it failed to sustain those levels.

The report also pointed out that the U.S. Dollar Index strengthened to 101.28 from around 101, while crude oil prices remained above the $70 per barrel mark. Both factors continued to influence sentiment in the foreign exchange market.

According to Finrex, the Reserve Bank of India has been purchasing dollars around the 94.10-94.20 levels. The intervention has helped exporters secure favourable hedging opportunities while allowing importers to manage near-term foreign currency payment obligations.

Asian Currencies Trade Mixed

Currency markets across Asia presented a mixed picture during Tuesday’s session. The Malaysian ringgit recorded the strongest gain among regional peers, rising 0.52%. The Indonesian rupiah followed with an advance of 0.40%, while the Chinese renminbi and Taiwan dollar posted modest gains of 0.07% and 0.06%, respectively.

On the other hand, the South Korean won was the weakest performer, declining 0.51%. The Thai baht slipped 0.18%, while the Japanese yen weakened 0.16%. The Singapore dollar and Philippine peso also edged lower by 0.09% and 0.05%, respectively.

Yen Remains Under Pressure

The Japanese yen continued to trade near levels last seen in 1986, keeping market participants alert for any possible intervention by Japanese authorities.

Meanwhile, the U.S. dollar eased slightly from its recent multi-month highs as investors awaited upcoming U.S. employment data, which could provide further guidance on the outlook for interest rates.

Currency traders are expected to closely monitor movements in the dollar index, crude oil prices and central bank activity through the day. These factors, along with global risk sentiment, are likely to determine the rupee’s direction in the near term while it remains within the range indicated by Finrex.