Currency Check: Rupee opens slightly higher; Asian peers trade lower

The Indian rupee opened marginally higher on June 1, despite lack of progress in U.S.-Iran peace talks lifted oil prices, while traders also anticipate elevated foreign portfolio outflows to weigh on the currency

Indian rupee opened higher by 3 paise at 94.97 per dollar on Monday against Friday’s close of 95.

According to CR Forex Advisors, the 95.50–95.75 zone remains a strong resistance area for USDINR. As long as crude oil prices remain under control and global risk sentiment continues improving, the rupee could gradually appreciate towards the 94.00–94.50 region in the near term.

The U.S. dollar held steady on Monday after a weekly loss as markets awaited the results of peace talks in the Middle East and signals on the timing of central bank rate hikes.

Most Asian currencies weakened, indicating a stronger US dollar across the region. South Korean Won was the biggest loser, declining 0.611%, followed by  Indonesian Rupiah, which fell 0.196%, while the Thai Baht slipped 0.187%.

Philippines Peso declined 0.151%, and the Japanese Yen weakened 0.125%. The Singapore Dollar lost 0.086%, while the Malaysian Ringgit edged lower by 0.013%.

Taiwan Dollar was almost flat, falling only 0.010%.  Chinese Renminbi was the only currency to strengthen, gaining 0.140% against the US dollar.