The Indian rupee opened with marginal gains on June 16, with markets assessing the durability of the Iran peace deal and whether the dip in oil prices will be sustained.
The rupee opened 8 paise higher at 94.63 against the US dollar on Tuesday, compared to Monday’s close of 94.71.
According to Finrex Treasury Advisors, the rupee is expected to open around 94.60 against the US dollar and trade in the 94.25–95.00 range during the session. The outlook comes as crude oil prices remain elevated near $83.25 per barrel, while market participants await further details of the recently announced agreement between the US and Iran.
The advisory firm said exporters may utilise any uptick in the USD/INR pair to hedge their receivables, while importers should continue buying on dips within the indicated trading band.
Asian currencies traded mixed against the US dollar, with the Indonesian Rupiah emerging as the top performer, appreciating 0.85% from the previous close. The Japanese Yen gained 0.08%, while the Chinese Renminbi advanced 0.07%, indicating modest buying interest in regional safe-haven and major Asian currencies. The Thai Baht also rose 0.07%, supported by steady foreign inflows, while the Philippine Peso added 0.12%.
Among the relatively stable currencies, the Singapore Dollar edged up 0.01%, and the South Korean Won remained largely unchanged with a marginal decline of 0.01%. The Taiwan Dollar also slipped slightly by 0.02%, reflecting subdued trading activity.
Meanwhile, the Malaysian Ringgit was the weakest currency in the pack, declining 0.16% against the greenback.
The U.S. dollar held near 10-day lows on Tuesday as a deal to end the Middle East war buoyed risk appetite, with attention turning to central bank meetings in Japan and Australia to gauge if the peace deal came a little too late to ease near-term inflation concerns.
The euro was at $1.159, just below the 10-day high of $1.1622 it touched on Monday. Sterling last bought $1.3413 in early trade on Tuesday.
The dollar index, which measures the U.S. currency against six other units, was at 99.66. The index is up 2% since the conflict first erupted at the end of February in a volatile reaction to a fragile ceasefire and regular tit-for-tat attacks.
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