Currency Check: Rupee opens flat at 95.23/ dollar; Asian currencies trade mixed

The Indian rupee opened unchanged on July 6, after recent market movements suggested it might come under further pressure, while struggling Asian currencies add to the weak outlook.

The rupee opened flat at 95.23 against the US dollar on Monday, compared to Friday’s close of 95.22.

Expect rupee to rise on Monday hoping the dollar demand falls after the month end and the defense buying. The dollar Index this morning was unchanged while oil prices were a tad higher keeping the opening of dollar rupee at 95.20 virtually unchanged, said Finrex.

It expects the rupee to remain in the range of 94.80 to 95.50 with RBI protecting the upside. Exporters may now sell near term exports as 95.40/50 levels while importers can buy the dips.

Asian currencies traded on a mixed note against the US dollar, with the South Korean won emerging as the top performer, strengthening 0.198 percent, followed by the Indonesian rupiah, which gained 0.178 percent. The Chinese renminbi also advanced 0.074 percent, while the Malaysian ringgit rose 0.037 percent. Modest gains were seen in the Thai baht and Singapore dollar, which appreciated 0.018 percent and 0.015 percent, respectively.

On the other hand, the Japanese yen was the worst-performing currency in the region, declining 0.136 percent against the US dollar. The Philippine peso slipped 0.114 percent, while the Taiwan dollar edged lower by 0.081 percent.

Meanwhile, the U.S. dollar steadied near a two-week low on Monday as investors scaled back bets on a Federal Reserve rate hike this year, while the yen remained pinned near a 40-year low, keeping investors nervous about what Tokyo might do next.

The euro was at $1.1435, not far from its strongest level in two weeks, while sterling last bought $1.3351. The dollar index, which measures the U.S. currency against six other units, was at 100.9 in early trading.

The yen was at 161.57 per U.S. dollar, just off the 1986 low of 162.84 it touched last week, as traders remain nervous about possible intervention after a sudden surge in buying briefly lifted the currency on Thursday.

The South Korean won firmed a touch on the first day of its historic 24-hour onshore spot dollar-won trading. It was fetching 1,534 per dollar.