Investing.com– Most Asian currencies were little changed on Monday as the U.S. dollar held near an 18-month high, with investors awaiting U.S. inflation data later this week, while the rupee gained sharply after the Reserve Bank of India unveiled a broad package of measures to curb dollar demand.
The US Dollar Index, which measures the greenback against a basket of six major currencies, was steady at 102.17 by 23:42 ET (03:42 GMT), remaining near last week’s peak.
Indian rupee jumps on RBI measures
The Indian rupee’s USD/INR pair fell as much as 1.1% to 95.739 rupees, and it last traded 0.7% lower at 96.07.
The Reserve Bank of India introduced measures over the weekend to curb dollar demand and speculative trading.
The RBI has barred the rebooking of cancelled rupee-linked foreign-exchange derivative contracts, tightened rules on transactions without underlying exposure and required banks to set aside cash against certain contracts.
It has also opened a special window allowing state-run oil marketing companies to buy dollars directly from the central bank, reducing their demand in the spot market.
“In all, the central bank continues to support the rupee, helping to slow the pace of currency depreciation,” MUFG analysts said in a note.
Asia FX subdued, South Korean won hits two-year high
The South Korean won’s USD/KRW pair fell 0.6% to 1,332.58 won — its lowest since Oct. 2024.
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Gains were driven by record export growth, heavy semiconductor dollar receipts and a widening current-account surplus, which have increased the supply of dollars in South Korea’s foreign-exchange market.
Elsewhere in Asia, the Japanese yen’s USD/JPY pair ticked down 0.1%.
The Chinese yuan’s onshore USD/CNY and offshore USD/CNH pairs traded largely flat.
The Singapore dollar’s USD/SGD pair edged down 0.1%.
The Australian dollar’s AUD/USD pair traded largely unchanged.
Middle East tensions remain; U.S. CPI awaited
The dollar’s resilience was underpinned by heightened geopolitical tensions in the Middle East, where attacks by Yemen’s Iran-backed Houthi militants on Saudi Arabia and strikes on tankers over the weekend raised concerns about further disruptions to energy supplies.
Brent crude futures fell more than 1% to near $103 a barrel in Asian trading after U.S. President Donald Trump announced that Russia and Ukraine had agreed to an immediate ceasefire covering attacks on energy infrastructure.
