Rupee Starts Lower At ₹95.48 As Dollar Gains; Asian Currencies Mostly Weaken

The rupee opened 10 paise lower at ₹95.48 against the U.S. dollar on August 31, compared with Friday’s close of ₹95.38. The domestic currency came under pressure as the dollar strengthened and higher oil prices remained a concern for import-dependent India.

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Rupee Seen In Narrow Range

Finrex expects the rupee to trade between ₹95.25 and ₹95.75 during Monday’s session. The dollar index had climbed to 99.66, while several major asset classes ended lower than their previous levels.

Exporters are expected to remain active around ₹95.60, while importers could use declines in the rupee to meet their dollar requirements. Finrex also noted that August 31 is the final day for mobilisation of deposits under the Reserve Bank of India’s FCNR(B) scheme.

The opening level keeps the rupee-dollar rate close to the ₹95.50 mark, with the currency yet to establish a clear direction in early trading.

Asian Currencies Mostly Lower

Asian currencies had a mixed start against the U.S. dollar. The Indonesian rupiah rose 0.29%, while the Japanese yen gained 0.09%.

The South Korean won fell 0.04%, and the Philippine peso declined 0.10%. The Thai baht weakened 0.19%, while the Taiwan dollar lost 0.17%.

The Chinese renminbi slipped 0.14% and the Malaysian ringgit declined 0.20%. The Singapore dollar also moved lower, easing 0.02%.

The regional moves came as the U.S. dollar held close to a two-week high against major currencies.

Fed Rate Expectations Support Dollar

The dollar has drawn support from increased expectations of higher U.S. interest rates following hawkish remarks from Federal Reserve Chair Kevin Warsh. Investors are assessing the comments for their implications for the future path of monetary policy.

The yen has also come under pressure, moving back through the closely watched 160-per-dollar level.
For the Indian currency, movements in the dollar and global crude markets remain important external factors. A stronger dollar can increase the local cost of imported commodities, while higher crude prices can add to India’s dollar demand.

The rupee’s opening at ₹95.48 therefore leaves the currency near Friday’s closing level, with exporter selling and importer demand expected to influence trading within the projected ₹95.25-₹95.75 range through the day.