Rupee Opens Unchanged At 95.13 Against U.S. Dollar As Asian Currencies Advance

The Indian rupee opened at 95.13 against the U.S. dollar on Thursday, unchanged from its previous close, as currency markets tracked a weaker dollar and softer crude oil price. The domestic currency started the session on a steady note even as several Asian peers recorded gains against the greenback.

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Market participants are also watching global energy markets, where the crude oil price has eased below $80 per barrel, a development that typically influences India’s import bill and foreign exchange dynamics.

Rupee Trades In Line With Market Expectations

According to Finrex, the combination of lower oil prices and a softer U.S. dollar could support the rupee during the day. The firm expects the domestic currency to trade within a range of 94.80 to 95.20 against the U.S. dollar.

Finrex said exporter dollar sales and continued foreign currency inflows are expected to provide support to the rupee. At the same time, demand from importers, oil marketing companies and purchases by state-run banks, likely on behalf of the Reserve Bank of India, could limit further appreciation.

The firm also noted that exporters may continue selling on any rise in the dollar for their near-term receivables, while importers are likely to use any decline in the dollar to cover payment obligations through September. These factors could influence the rupee and the broader currency market, alongside movements in the crude oil price.

Asian Currencies Post Broad Gains

Most Asian currencies traded higher against the U.S. dollar during Thursday’s session.

The Indonesian rupiah led regional gains, rising 0.524%. It was followed by the South Korean won, which advanced 0.313%, while the Thai baht gained 0.203%.

The Taiwan dollar, Malaysian ringgit, Philippine peso, Singapore dollar and Japanese yen also recorded modest gains against the U.S. currency. In contrast, the Chinese renminbi was the only major regional currency to weaken, slipping 0.018% from its previous close.

Dollar Index Holds Near Multi-Week Low

The U.S. dollar index, which measures the greenback against a basket of six major currencies, was little changed at 99.65. The index continued to hover near its lowest level in around six weeks, reflecting the absence of a clear directional trend in global currency markets.

A softer dollar generally supports emerging market currencies, although domestic demand for foreign exchange and global risk sentiment continue to shape trading conditions. The direction of the crude oil price, overseas fund flows and dollar demand from importers are expected to remain key variables for the rupee through the remainder of the trading session.