The Indian rupee opened higher on June 12, buoyed by a retreat in crude prices after U.S. President Donald Trump signalled that a deal with Iran is imminent, a development that could soften a persistent pressure point for the currency.
Indian rupee opened 37 paise higher at 95.38 per dollar on Friday against previous close of 95.75.
According to Finrex, the Indian rupee remains sensitive to developments surrounding the Strait of Hormuz, while oil companies and global portfolio investors (GPIs) have been active dollar buyers in recent sessions. Additional mid-month demand also weighed on the domestic currency, pushing it from 95.26 to 95.76 in the previous session and creating an opportunity for exporters to offload dollars.
The brokerage expects the rupee to open around 95.30 against the US dollar and trade within a range of 95.00-95.75 during the day. Exporter dollar sales are likely to emerge on any uptick in the currency pair, while importer demand may provide support near the 95.10 level.
Asian currencies traded mixed against the US dollar on Thursday. The South Korean won led gains in the region, rising 0.88 percent, followed by the Philippine peso, which appreciated 0.42 percent. The Malaysian ringgit also advanced 0.26 percent, while the Taiwan dollar and Chinese renminbi posted marginal gains of 0.09 percent and 0.02 percent, respectively.
On the downside, the Indonesian rupiah emerged as the worst-performing currency among its Asian peers, declining 0.25 percent against the greenback. The Japanese yen weakened 0.17 percent, while the Singapore dollar and Thai baht slipped 0.09 percent and 0.03 percent, respectively.
The US dollar steadied in early trade after falling to a one-week low, as traders assessed reports suggesting a ceasefire agreement in the Middle East could be near.
Among major currencies, against the yen, the U.S. currency was up 0.1% at 160.07 yen. The Australian dollar was down 0.1% at $0.7045, while its kiwi counterpart was down 0.1% at $0.5830.
The euro last bought $1.1576, holding near its strongest in a week after the European Central Bank’s first interest rate hike in three years on Thursday. The British pound was flat at $1.3414.
www.tradingview.com