Currency Check: Rupee opens with marginal gains; Asian peers trade mostly higher

The Indian rupee opened marginally higher against the US dollar on July 23, despite worsening U.S.-Iran dispute fuels a further rally in oil prices.

The domestic currency opened higher at 96.49 per US dollar, against previous close of 96.57.

According to Finrex, the Indian rupee is expected to open at 96.50 against the US dollar as Brent crude oil surged to around $96 per barrel amid escalating geopolitical tensions. The conflict entered its 12th day after fresh US strikes, while Yemen’s Houthis claimed attacks on Saudi oil tankers in the Red Sea, heightening concerns over potential supply disruptions.

The rupee remains close to its record closing low of 96.96, and a further rise in crude oil prices could push the domestic currency beyond that level.

Finrex expects the Reserve Bank of India (RBI) to intervene, if required, to curb excessive volatility. Exporters are advised to sell dollars on intraday rallies, while importers may consider buying on dips.

Among Asian currencies, the South Korean won was the strongest performer, appreciating 0.406% from the previous close, followed by the Taiwan dollar, which gained 0.182%. The Singapore dollar rose 0.054%, while the Japanese yen edged up 0.043%. The Philippine peso and Thai baht remained largely stable, advancing 0.006% and 0.003%, respectively.

On the weaker side, the Indonesian rupiah was the biggest laggard, declining 0.162%, followed by the Chinese renminbi, which slipped 0.106%. The Malaysian ringgit was nearly unchanged, easing 0.005%.

The dollar largely stabilised on Thursday as renewed U.S.-Iran tensions kept investors on edge and underpinned demand for the safe-haven currency, while the yen languished near a 40-year low with little sign of a turnaround.