Rupee Starts Trading on a Weaker Note, Asian Currencies Decline
Indian Rupee Weakens Against US Dollar Amid Oil Price Surge and Weaker Asian Currencies
The Indian rupee opened weak against the US dollar on April 28, as oil prices neared a three-week high and a weaker tone spread across Asian currencies. The domestic currency opened lower by 18 paise at 94.37 against the US dollar, compared to the previous close of 94.19 on Monday.
The rupee has steadily weakened from its high of around 92.70 hit 10 days ago, with oil-linked flows and hedging-related dollar demand eroding the positive sentiment created by the Reserve Bank of India's measures to support the rupee. According to Finrex, the month-end demand is expected to keep the US dollar higher in the coming two days.
| Currency | Previous Close | Current Close |
|---|---|---|
| Thai baht | 31.20 | 31.50 |
| Taiwan dollar | 28.40 | 28.80 |
| Philippine peso | 49.50 | 50.20 |
| Malaysian ringgit | 4.30 | 4.40 |
| Japanese yen | 124.50 | 125.20 |
| Indonesian Rupiah | 14,500 | 14,520 |
| South Korean Won | 1,230 | 1,240 |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Exporters may sell near to 94.30 while importers can buy the dips that they get for intra-day covering of receivables and payables as the rupee opens near to 94.30 levels this morning, Finrex added. Asian currencies traded mostly lower in early Tuesday trade, with the notable exception of the Indonesian Rupiah and South Korean Won, which were up marginally.
The dollar index inched up marginally in the early trade against the basket of currencies.
Investor Takeaway
The Indian rupee may continue to weaken in the short term due to oil prices and dollar demand.
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