Indian Rupee Edges Higher Amid Weaker Regional Markets

Indian Rupee Opens Higher Despite Elevated Oil Prices and Foreign Portfolio Outflows

The Indian rupee opened marginally higher on June 1, despite a lack of progress in U.S.-Iran peace talks that lifted oil prices, and traders anticipating elevated foreign portfolio outflows weighing on the currency.

The 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.

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The South Korean Won was the biggest loser, followed by the Indonesian Rupiah and the Thai Baht. The Philippines Peso declined, and the Japanese Yen weakened. The Singapore Dollar lost value, while the Malaysian Ringgit edged lower. The Taiwan Dollar was almost flat, falling only 0.010%. The Chinese Renminbi was the only currency to strengthen, gaining 0.140% against the US dollar.