Currency Watch: Indian rupee weakens further on oil surge, dollar demand; Asian peers fall — TradingView News

The Indian Rupee opened on a weaker note and extended its decline against the US Dollar for the second consecutive session on April 29, pressured by the persistent rise in oil prices and an ongoing demand–supply mismatch in dollar flows, which continued to weigh on the domestic currency.

The domestic currency opened lower 20 paise lower at 94.74 per dollar on Wednesday against previous close of 94.54.

According to Finrex, the rupee remains vulnerable to the rising cost of oil which is keeping the Indian basket price also higher as it approaches its all-time high of 95.22 and closing high of 94.8050.

Exporters may continue to sell at the top (do some hedging) while importers to wait for lower levels to buy, it added.

The dollar firmed on Wednesday as investors awaited a closely watched Federal Reserve rate decision in what was likely to be Chair Jerome Powell’s swan song, with war in the Middle East raging and hopes for an imminent resolution dimming.

Currencies held tight ranges in thinned Asia trade, with markets in Japan closed for a holiday and a slew of major central bank decisions still on deck.

Against the dollar, the euro last bought $1.1716 while sterling was little changed at $1.3523, as both currencies edged further away from their highs hit earlier this month.

Asian currencies largely traded lower against the previous close, reflecting broad-based weakness across the region. The South Korean Won led the declines, falling 0.206%, followed by the Indonesian Rupiah, which slipped 0.186%.

In contrast, the Malaysian Ringgit and Singapore Dollar were the only currencies to post gains, rising 0.030% and 0.016%, respectively.