Rupee Opens Marginally Lower At 95.70 As Asian Currencies Trade Mixed

The Indian rupee opened at 95.70 against the U.S. dollar on August 19, compared with the previous close of 95.68, marking a marginal decline at the start of trade. Higher oil prices and a softer risk appetite remained key factors influencing the currency’s near-term movement.

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RBI Intervention Supports Rupee

Finrex said the rupee has shown resilience despite the pressure from higher oil prices, with suspected intervention by the Reserve Bank of India helping limit the currency’s decline.

The brokerage said exporters were likely to remain selective with dollar sales, while importers continued to use dips in the rupee to meet their dollar requirements. It also noted that oil companies remained active buyers of dollars to meet payment obligations.

Finrex added that the RBI could protect a particular level during the session, with 95.80 cited as a possible level, while dollar demand from oil companies could continue because of their payment requirements.

Asian Currencies Show Mixed Trend

The rupee’s movement came as other Asian currencies posted mixed performances against the U.S. dollar.

The Indonesian rupiah was the weakest among the currencies listed, declining 0.358% from the previous close. The Philippine peso fell 0.30%, while the Thai baht weakened 0.193%. The Malaysian ringgit slipped 0.16%.

The Taiwan dollar, Singapore dollar and Chinese renminbi also declined, easing 0.075%, 0.055% and 0.05%, respectively.

In contrast, the South Korean won strengthened 0.218%, while the Japanese yen gained 0.082% against the previous close.

Dollar Near Multi-Month Lows

The U.S. dollar remained close to multi-month lows against major global currencies on Wednesday. Treasury yields eased from recent highs, while investors awaited the minutes of the Federal Reserve’s latest policy meeting for further indications on the central bank’s interest-rate outlook.

The dollar’s broader movement remains an important factor for emerging-market currencies, including the rupee. Higher crude prices also remain relevant for India because oil companies require dollars to fund their overseas payment obligations.

The rupee price therefore remained under pressure at the opening, although the move was limited compared with the previous session’s close. Market participants will continue to track dollar demand from importers, movements in crude prices and the RBI’s presence in the foreign exchange market as the session progresses.