The Indian rupee opened with modest gains against the US dollar on August 25, as traders expecting the central bank to lean against pressure on the currency, while a modest pickup in portfolio inflows is also expected to offer support.
The rupee opened flat at 95.72 per dollar, compared with Monday’s close of 95.74.
According to Finrex, the Indian rupee is expected to open around 95.73 this morning as dollar index rises to 99.02 while Brent oil prices were a tad lower at $ 92.52 per barrel as US threatened countries doing business with Iran but held off on penalties for now while Iran vowed to retaliate after US widened the sanctions.
The rupee has remained range bound for the last two weeks with oil companies and RBI buying dollars at the lower end while RBI was also protecting the downside to the rupee by selling the dollars near to 95.75 levels.
The exporters are expected to sell their receivables for the day between 95.75 to 95.80 while importers to buy the dips as oil prices continue to remain on the upper end of the curve, it added.
Asian currencies were mixed against the US dollar, with the Indonesian rupiah declining 0.15%, while the South Korean won gained 0.15%. The Thai baht and Taiwan dollar also strengthened by 0.10% and 0.05%, respectively, while the Singapore dollar and Malaysian ringgit edged up 0.04% and 0.02%.
Meanwhile, the Japanese yen slipped 0.02%, while the Philippine peso and Chinese renminbi weakened 0.05% and 0.03%, respectively.
The U.S. dollar struggled to hold onto gains against major peers on Tuesday, as investors parsed Washington’s expanded Iran-related sanctions and renewed efforts to ease pressure on longer-dated Treasury yields.
