Indian Rupee – Market Update

Advisory Bazaar Info Services

* Rupee Seen Opening Lower: The Indian rupee is expected to open weaker amid rising crude oil prices and higher U.S. Treasury yields.

* Trading Range: After closing at 94.95 following a three-session winning streak, the rupee is expected to trade in the 94.80–95.20 range.

* Two-Month High: The rupee had strengthened to a two-month high of 94.80, supported mainly by RBI intervention and dollar selling by foreign banks.

* Better Performance vs Asian Currencies: Despite several challenges, the rupee has performed relatively well compared with other Asian currencies.

* RBI Intervention Key: Concerns remain over the sustainability of the rupee’s gains without further RBI intervention. The RBI continues to be a major dollar seller in the market, which remains crucial for supporting current rupee levels.

* NRI Deposits Provide Support: Higher NRI deposits have strengthened the RBI’s ability to intervene in the foreign exchange market.

* Crude Oil Rises: Rising tensions in the Middle East have pushed crude oil prices higher, with Brent futures rising to around $95.50 per barrel.

* U.S. Treasury Yields: The rise in crude oil prices has also contributed to higher U.S. Treasury yields, potentially adding pressure on the rupee.