The Indian rupee opened higher on June 17, aided by a further drop in oil prices, though weakening in Asian currencies ahead of the Fed decision may cap the advance.
The rupee opened 11 paise higher at 94.45 against the US dollar on Wednesday, compared to Tuesday’s close of 94.56.
The Indian rupee is likely to open at 94.45 against the US dollar on June 17, supported by softer crude oil prices and a weaker greenback. According to Finrex, the decline in Brent crude below the $80-per-barrel mark and the US Dollar Index easing to around 99.50 are expected to provide near-term support to the domestic currency.
Finrex noted that exporters should utilise any uptick in the USD/INR pair to hedge their positions, similar to Monday’s move when the rupee weakened from 94.45 to 94.80 during the session.
For importers, the advisory remains to accumulate dollars on declines, towards 94.20 level.
Asian currencies traded on a mixed note on Wednesday, with the Philippine peso emerging as the top gainer, while the South Korean won led losses against the US dollar.
The Philippine peso rose 0.257 percent, outperforming its regional peers, followed by gains in the Japanese yen (0.037 percent), Chinese renminbi (0.015 percent) and Singapore dollar (0.008 percent).
On the other hand, the South Korean won declined 0.313 percent, making it the worst-performing Asian currency in the basket. The Indonesian rupiah fell 0.090 percent, while the Taiwan dollar slipped 0.054 percent. The Thai baht and Malaysian ringgit were largely flat, shedding 0.012 percent each.
The dollar eased on Wednesday ahead of the Federal Reserve’s first policy decision under Chair Kevin Warsh, with lingering optimism over an interim U.S.-Iran peace deal underpinning risk appetite and dampening demand for the U.S. currency.
The yen found little respite against a weaker greenback and teetered further into intervention territory, after a well-telegraphed Bank of Japan (BOJ) rate hike delivered few surprises.
Moves in currencies were largely subdued in the early Asian session, with investors hesitant to take on large positions ahead of the Fed’s rate outcome later in the day.
The euro steadied at $1.1611 while sterling was little changed at $1.3430.
