The Indian rupee opened flat on June 23, underpinned by softer crude prices on progress in U.S.-Iran negotiations, although expectations of Federal Reserve rate hikes are likely to temper the rise.
The rupee opened flat at 94.69 against the US dollar on Tuesday, compared to Monday’s close of 94.68.
According to Finrex, the Indian rupee is expected to open at 94.55 against the U.S. dollar and trade in the 94.20-94.90 range during the day. The brokerage expects any uptick in the dollar to be sold into. While softer crude oil prices, with Brent trading below $78 per barrel, are supportive for the domestic currency, gains are likely to be capped by the strength in the dollar index.
Finrex advised exporters to utilize levels above 94.75 to hedge their receivables, while importers can buy on dips, maintaining 94.90 as the stop-loss level for uncovered import positions.
The majority of Asian currencies traded lower against the U.S. dollar, reflecting a cautious risk sentiment across the region. The Philippine Peso emerged as the worst performer, slipping 0.315 percent, followed by the Indonesian Rupiah, which declined 0.219 percent. The Chinese Renminbi also weakened by 0.117 percent, while the South Korean Won and Thai Baht fell 0.075 percent and 0.055 percent, respectively.
Among the relatively stable currencies, the Japanese Yen was nearly unchanged with a marginal decline of 0.006 percent, while the Taiwan Dollar and Singapore Dollar eased 0.019 percent and 0.023 percent, respectively. In contrast, the Malaysian Ringgit bucked the broader regional trend, gaining 0.305 percent.
Meanwhile, the U.S. dollar held firm on Tuesday as traders positioned for a more hawkish Federal Reserve and oil prices rebounded following steep losses, while the yen flirted with a four-decade low.
