The Indian rupee opened flat at 94.47 per dollar versus the US dollar on September 4 , compared with Thursday’s close of 94.49.
According to Finrex, the rupee is expected to open slightly lower at 94.60 and stay in the range of 94.00 to 94.75 in today’s session.
The dollar index fell to 98.95 on rise in yen while Brent oil continues to stay near to $ 97 per barrel. Expectation that oil companies will continue to buy dollars due to higher oil prices is always there. The gain of yen could be seen as a reversal of carry trade which could intensify once 150 is broken on the USD/JPY pair which could take USD/INR higher.
Exporters to wait for hedging exports but can sell cash exports near to 94.75 while importers may continue hedging as $ rupee falls to levels nearer to 94.20. We wait for what action RBI takes in case rupee falls further towards 95.00 levels, it added.
Asian currencies traded mostly higher against the US dollar, with the Indonesian rupiah (+0.475%) leading the gains, followed by the Taiwan dollar (+0.202%) and Philippine peso (+0.122%).
The Chinese renminbi (+0.037%), Thai baht (+0.030%), Japanese yen (+0.026%) and Singapore dollar (+0.008%) also edged higher. Meanwhile, the South Korean won (-0.158%) was the biggest decliner, while the Malaysian ringgit (-0.007%) slipped marginally.
The dollar sank to the lowest level since May after Federal Reserve Governor Christopher Waller noted progress on inflation and as the yen surged against its major counterparts.
