Rupee Watch: Rupee opens weaker amid pressure on Asian currencies, oil concerns — TradingView News
The Indian rupee opened weaker against the dollar on May 14, tracking losses across Asian currencies as elevated crude oil prices and geopolitical tensions continued to weigh on sentiment.
At 9:05 am, the rupee was trading at 95.72 against the dollar, marginally weaker from its previous close.
Traders remained focused on possible policy measures after the Indian government sharply increased effective taxes on gold and silver imports on May 13 to conserve foreign exchange reserves amid rising global tensions.
Experts said further measures may be required if elevated oil prices persist. “The Indian government also needs to raise petrol and diesel prices to prevent oil companies from bleeding and ensure the fiscal deficit remains under control,” market participants said.
They added that authorities may also look at measures to attract foreign currency inflows. “The next step would be to get inflows into the country in the form of dollar deposits and FCNR deposits so that the outflows can be matched at least till the war ends and oil prices fall,” experts said.
Markets are also closely watching the meeting between President Donald Trump and Chinese President Xi Jinping later in the day, with investors hoping for discussions around the Iran conflict and reopening of the Strait of Hormuz.
“We hope there will be talks on the Iran issue as well as the opening of the Strait of Hormuz, which can bring oil prices below $100 and help the global economy,” experts added.
Asian currencies traded largely lower during the session. The South Korean won declined 0.22 percent, while the Indonesian rupiah and Philippine peso lost 0.15 percent each. The Japanese yen and Thai baht slipped 0.05 percent each.
Among gainers, the Chinese renminbi rose 0.05 percent while the Taiwan dollar added 0.03 percent.
The Bloomberg Dollar Spot Index was down 0.1 percent, indicating mild weakness in the dollar against major global currencies.
