Indian Rupee Rises Ahead of RBI Policy Decision, Asian Currencies See Broad Gains

Indian Rupee Opens Marginally Higher Ahead of Central Bank's Policy Outcome

The Indian rupee opened marginally higher on June 5, ahead of the central bank's policy outcome, which is due shortly. The policy is expected to include a potential rate hike and steps to attract dollar inflows.

The rupee opened higher at 95.72 per dollar on Friday, against Thursday's close of 95.79. According to financial analysts, the rupee is expected to open almost near to 95.70 and remain within a range of 95.25 to 96 for the day. This presents an opportunity for exporters to sell dollars at a rate above 95.80 and for importers to buy the dips.

The Reserve Bank of India (RBI) may keep interest rates constant but may announce other policy moves to check the fall in the rupee. This assessment comes from financial research firm Finrex.

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Asian Currencies Trade on a Mixed Note

Asian currencies traded on a mixed note against the US dollar, with most regional units weakening amid broad dollar strength. The South Korean Won emerged as the worst performer, declining 0.463%. It was closely followed by the Indonesian Rupiah, which fell 0.454%.

The table below highlights the performance of major Asian currencies against the US dollar:

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On the other hand, a few currencies bucked the trend. The Philippine Peso was the top gainer in the region, rising 0.109%. It was followed by the Chinese Renminbi and the Japanese Yen, which advanced 0.059% and 0.056%, respectively.

US Dollar Remains Firm

The U.S. dollar remained firm, supported by safe-haven demand. The dollar index, which tracks the greenback against a basket of major currencies, was little changed at 99.434. This puts the dollar on course for a weekly gain of around 0.5 percent.