Rupee Ends 5-Day Losing Streak as Oil Prices Retreat
Indian Rupee Rebounds from Five-Day Losing Streak
The Indian Rupee opened higher on May 6, snapping a five-day losing streak, following a pullback in oil prices after U.S. President Donald Trump indicated a possible peace deal with Iran. The domestic currency opened 25 paise higher at 95.04 per dollar against Tuesday's close of 95.29.
According to Finrex, the Rupee had fallen to its all-time low at 95.4450 the previous day and closed at 95.28. Analysts had expected an opening of 95.05. Exporters can now sell the upticks towards 95.25 if they secure the rate today, while importers can buy the dips for payments due in a day or two and wait to hedge, as per Finrex.
The dollar retreated against most major currencies on Wednesday after the U.S. signaled it may be nearing a deal with Iran. The yen continued to drift weaker, moving towards levels that have previously drawn intervention from Tokyo.
Global Currency Performance
| Currency | Appreciation (%) |
|---|---|
| South Korean Won | 0.682% |
| Thai Baht | 0.385% |
| Philippines Peso | 0.365% |
| Malaysian Ringgit | 0.311% |
| Taiwan Dollar | 0.266% |
| Singapore Dollar | 0.181% |
| China Renminbi | 0.157% |
| Japanese Yen | 0.152% |
| Indonesian Rupiah | -0.172% |
In contrast to the other Asian currencies, the Indonesian Rupiah was the only currency that weakened, declining by 0.172%. The Indian Rupee's rebound is likely to provide some relief to the Indian economy, which has been facing a slowdown in recent months.
Investor Takeaway
The Indian Rupee may see a slight recovery due to a pullback in oil prices.
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