Rupee Opens Steady Against U.S. Dollar As Asian Currencies Show Mixed Trend

The Indian rupee began Monday’s session on a flat note, opening at 95.23 against the U.S. dollar compared with Friday’s closing level of 95.22. The domestic currency showed little movement in early trade as global currency markets remained broadly stable and Asian peers traded with mixed direction.

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Rupee Holds Near Previous Close

The rupee remained close to its previous closing level after recent sessions marked by volatility. According to Finrex, the easing of month-end dollar demand and defence-related buying could provide some support to the domestic currency. The firm expects the rupee to trade in the 94.80-95.50 range, adding that the Reserve Bank of India is likely to continue monitoring excessive volatility. It also suggested exporters could consider hedging near the 95.40-95.50 levels, while importers may utilise declines in the currency for purchases.

Asian Currencies Trade Mixed

Currency markets across Asia presented a mixed picture at the start of the week. The South Korean won led regional gains with a rise of 0.198% against the U.S. dollar, followed by the Indonesian rupiah, which advanced 0.178%. The Chinese renminbi gained 0.074%, while the Malaysian ringgit added 0.037%. Smaller gains were also recorded by the Thai baht and Singapore dollar.

On the other hand, the Japanese yen weakened 0.136%, making it the weakest-performing major Asian currency during early trade. The Philippine peso slipped 0.114%, while the Taiwan dollar declined 0.081%.

Dollar Index Remains Stable

The U.S. dollar remained near a two-week low as investors reassessed expectations for future U.S. Federal Reserve policy. The dollar index, which tracks the greenback against six major currencies, stood at 100.9 in early trading.

The euro traded at $1.1435, remaining close to its strongest level in two weeks, while the British pound was quoted at $1.3351. The Japanese yen traded around 161.57 per U.S. dollar after touching a multi-decade low of 162.84 last week, keeping market participants alert for any possible policy response from Japanese authorities.

Meanwhile, the South Korean won also attracted attention as onshore 24-hour spot dollar-won trading commenced, with the currency trading near 1,534 per U.S. dollar.

Markets Await Fresh Global Cues

It is expected that the rupee will continue to follow the dollar’s movements along with other global currencies during the trading period. Traders will keep an eye on international events and the need for the dollar at home; any developments in the world financial system can affect the rupee in the coming days.