MUMBAI (June 11): The Indian rupee extended its opening losses on Thursday, pressured by weak Asian cues and persistent dollar demand from oil firms.
The rupee was quoted at 95.6850 per US dollar at 11:10am IST, down 0.44% on the day after opening at 95.52. The currency has stayed under pressure since the open, with bankers pointing to sustained dollar demand, particularly from oil companies, alongside usual mid-month flows.
After a period where price action was largely driven by the Reserve Bank of India’s measures to draw dollar inflows and support the rupee, the market appears to have reverted to its prior pattern of tracking oil, a currency trader at a bank said.
Asian currencies wavered and equities dipped after fresh US strikes on Iran overnight dented hopes of an imminent resolution to the conflict.
In response, Iran said it would shut the Strait of Hormuz and conducted counter-attacks on US military targets in Kuwait and Bahrain. Iran closing the strait is a reversal from recent weeks, when Iran had allowed limited transit for ships from friendly nations.
Brent crude surged to a high of US$95.50 on Thursday.
Meanwhile, US inflation data had limited impact on currency moves. Headline inflation rose to 4.2% year-on-year, its highest in over three years, while a softer-than-expected core reading kept near-term Federal Reserve rate expectations largely unchanged.
Uploaded by Siow Chen Ming
