The Indian rupee opened flat with negative bias on June 22, with oil prices softening after Iran highlighted progress in peace negotiations with the United States.
The rupee opened 2 paise higher at 94.35 against the US dollar on Monday, compared to Friday’s close of 94.33.
According to Finrex, the rupee is likely to open at 94.37 against the US dollar, tracking strength in the dollar index, which rose to 100.81, even as Brent crude eased to around $79 a barrel. The currency is expected to trade in a range similar to Friday, with dollar flows and buying by the RBI, oil companies and FPIs largely offsetting each other.
Finrex expects exporters to utilise upticks towards 94.50 and above to sell dollars, while importers may take advantage of dips towards 94.20 to buy the greenback.
Asian currencies traded mostly lower against the US dollar on Monday, with the Thai Baht emerging as the lone outperformer, while the Japanese yen and Chinese renminbi led declines.
The Japanese yen weakened 0.12 percent, followed by the Chinese renminbi, which fell 0.11 percent. The South Korean won, Malaysian ringgit, Taiwanese dollar, Indonesian rupiah, Philippine peso and Singapore dollar also edged lower, declining between 0.03 percent and 0.10 percent.
In contrast, the Thai baht gained 0.22 percent.
Meanwhile, the US dollar was firm on Monday as uncertainty clouded a tentative U.S.-Iran peace deal following threats from President Donald Trump to restart the war in the Middle East and Tehran’s announcement it had closed the Strait of Hormuz.
