Currency Check: Rupee opens lower for second straight session amid persistent middle east tensions — TradingView News
The Indian Rupee opened lower on May 27, falling on second day as hopes for an imminent end to the Middle East conflict have ebbed, keeping portfolio and merchant flows skewed against it.
Indian rupee opened lower by 6 paise at 95.74 per dollar on Wednesday against previous close of 95.68.
According to Finrex, the Indian rupee came under pressure on Tuesday due to month-end dollar demand and rising geopolitical risks, and the domestic currency is expected to remain weak in today’s session as well, with the rupee likely to open slightly lower near 95.80 against the US dollar.
The firm noted that fresh US strikes have dampened hopes of an early US-Iran peace agreement, leading to a rise in crude oil prices and weighing on emerging market currencies, including the rupee.
Finrex further stated that escalating tensions in the Middle East have heightened concerns over India’s current account deficit, adding pressure on the domestic currency. Although the Reserve Bank of India’s intervention had earlier supported the rupee and maintained a relatively firm trend, rising geopolitical uncertainty and higher oil prices have halted the appreciation momentum, creating fresh headwinds for the currency market.
The dollar index, which measures the greenback against the Japanese yen and five other major currencies, was little changed at 99.09 after rising 0.15 percent in the previous session.
Asian currencies traded mixed against the US dollar in the latest session. The Taiwan Dollar emerged as the strongest performer, gaining 0.449 percent, followed by the Philippine Peso and China’s Renminbi, rising 0.219 percent and 0.209 percent, respectively, while the South Korean Won posted a mild gain of 0.093 percent. Singapore Dollar remained largely flat with a marginal increase of 0.008 percent.
On the weaker side, the Thai Baht declined 0.172 percent, followed by the Indonesian Rupiah, which slipped 0.152 percent. The Malaysian Ringgit also weakened by 0.121 percent, while the Japanese Yen edged down 0.044 percent against the dollar.
