Rupee Maintains Steady Opening Amid Asian Currency Gains
Indian Rupee Opens Flat Against US Dollar Amid High Oil Prices
The Indian rupee opened flat against the US dollar on April 27, due to importer hedging demand spurred by stubbornly high oil prices, which are impacting other flows. The domestic currency maintained its value at 94.23 against the US dollar from its Friday's close of 94.25.
The Indian rupee experienced a significant decline last week, plummeting 1.42% to mark its worst weekly performance in three-and-a-half years. Despite the dollar Index falling, the rupee remains vulnerable to lower levels as buyers of $ continue to do so while the Reserve Bank of India (RBI) keeps a tab over the fall in rupee value.
Exporters are now getting an opportunity to partly hedge their receivables, while importers need to wait for hedging as they continue to buy the dips. Today, there is no significant data from any of the countries, with market participants awaiting the FOMC and other major central Bank meeting starting with the Bank of Japan from tomorrow, as noted by Finrex.
Most Asian currencies advanced in early Monday trading, with the Thai baht being the only exception. The Indonesian rupiah led the gains, followed by the Taiwan dollar, Malaysian ringgit, South Korean Won, and Philippine peso.
| Currency | Gain/Loss |
|---|---|
| Indonesian rupiah | +0.5% |
| Taiwan dollar | +0.3% |
| Malaysian ringgit | +0.2% |
| South Korean Won | +0.2% |
| Philippine peso | +0.1% |
The dollar slipped following an Axios report that Iran has offered a new proposal to reopen the Strait of Hormuz.
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