The Indian rupee opened lower on June 3, extending the fall on the second consecutive session.
Indian rupee opened lower by 18 paise at 95.45 per dollar on Wednesday against Tuesday’s close of 95.27.
According to Finrex, Brent crude oil prices climbed back to the $97-per-barrel mark as Iran launched fresh attacks, escalating tensions in the Middle East. Investors are closely monitoring geopolitical developments while also awaiting key U.S. economic data that could provide further clues on the Federal Reserve’s interest rate trajectory.
Meanwhile, the Reserve Bank of India’s Monetary Policy Committee (MPC) begins its meeting today, with the policy decision scheduled for June 5. Inflation, economic growth, and the rupee’s movement remain key areas of focus, with the central bank widely expected to keep interest rates unchanged.
Finrex noted that the central bank is likely to maintain the status quo for now and reassess its stance in the next policy meeting based on the monsoon’s progress and inflation trends.
The rupee has resumed its weakening trend and could come under further pressure during the day if the RBI does not step in to support the currency, Finrex said.
Asian currencies traded in a mixed manner against the US dollar. The Indonesian Rupiah emerged as the strongest performer, appreciating 0.427%. The South Korean Won also posted gains, rising 0.057%, while the Thai Baht advanced 0.040%. The Singapore Dollar strengthened by 0.016%, and the Taiwan Dollar edged up 0.006%.
On the other hand, the Japanese Yen and Chinese Renminbi both slipped marginally by 0.006%, while the Philippine Peso declined 0.018%.
The U.S. dollar steadied on Tuesday as markets took a wait-and-see approach to Middle East peace talks, with Lebanon announcing a limited ceasefire between Hezbollah and Israel, although broader geopolitical uncertainties kept traders on edge.
