The Indian rupee opened marginally lower on June 30, tracking losses in Asian peers, with traders noting that underlying flows are compounding pressure and limiting near-term upside.
The rupee opened 4 paise lower at 94.57 against the US dollar on Tuesday, compared to Thursday’s close of 94.53.
According to Finrex, the Indian rupee is expected to open around 94.60 per U.S. dollar, slightly weaker than the previous session’s close, and is likely to trade in the 94.20–94.75 range during the day.
The report noted that the 94.20 level has emerged as a strong support for the dollar, with the pair unable to sustain a break below that mark despite briefly touching 94.10 on a few occasions. Meanwhile, the U.S. Dollar Index strengthened to 101.28 from around 101, while crude oil prices also edged higher and continued to hold above the $70-per-barrel level.
Finrex added that the Reserve Bank of India (RBI) has been buying dollars around the 94.10–94.20 levels, helping exporters lock in more favourable hedging rates while also giving importers an opportunity to hedge their near-term payment obligations.
Asian currencies traded mixed against the US dollar on the day. The Malaysian Ringgit emerged as the top performer, appreciating 0.52%, followed by the Indonesian Rupiah, which gained 0.40%. The Chinese Renminbi and Taiwan Dollar also posted modest gains of 0.07% and 0.06%, respectively.
On the other hand, the South Korean Won was the weakest currency in the region, declining 0.51%. The Thai Baht slipped 0.18%, while the Japanese Yen fell 0.16%. The Singapore Dollar and Philippine Peso also edged lower, losing 0.09% and 0.05%, respectively.
Meanwhile, the yen was pinned at levels not seen since 1986 on Tuesday, stoking worries that a direct intervention from Tokyo was around the corner, while the dollar backed away from 13-month highs ahead of jobs data that could influence the U.S. rate outlook.
