Rupee Opens at 95.75 as Oil Falls and Dollar Index Nears High
Indian currency gains 6 paise to 95.75 per dollar, supported by lower crude prices and regional peer strength.
Key points
- The rupee opened at 95.75 per dollar, up 6 paise from the previous close of 95.81.
- Brent crude prices near $101.08 and foreign capital inflows supported the Indian currency.
- The dollar index reached 100.4 as traders raised expectations for an October rate hike to 56%.
The Indian rupee opened 6 paise higher at 95.75 per US dollar on September 22. This move reversed the previous session's close of 95.81.
Lower crude oil prices and falling long-dated US Treasury yields supported the currency. Importer hedging demand, however, limited the extent of the gains.
Oil prices support currency value
Brent crude traded near $101.08 per barrel during the morning session. This level provided a supportive backdrop for the rupee's performance.
Foreign capital inflows into Indian IPOs and bonds have kept the currency strong. These inflows helped maintain the rupee above the 96.00 level recently.
Asian peers largely gain ground
Asian currencies mostly rose against the dollar in early trade. The South Korean won led the gains with a 0.888% increase.
The Indonesian rupiah was the sole major loser, falling 0.499%. The Japanese yen also slipped slightly by 0.013% during the session.
Dollar index approaches weekly high
The dollar index stood at 100.4, just below a seven-week high. Market expectations for a Federal Reserve rate hike have risen.
Traders now price in a 56% chance of an October hike. This figure represents a significant increase from 43.5% a week earlier, according to TradingView data.
