Rupee opens higher at 94.78 per dollar, extending winning streak to eighth session

what happened

The Indian rupee opened stronger against the US dollar on Tuesday's successor session, at 94.78 versus Monday's close of 94.92, according to Moneycontrol. It marked the eighth straight day of gains. Finrex said the rupee was buoyed by inflows from the Jio Platforms IPO, open to retail and high-net-worth investors from today, as well as by Reserve Bank of India support.

Finrex suggested 94.73 could suit importers in the near term, since forward premiums for two months and beyond remain high. Exporters were advised to wait for 94.95 before selling or hedging. Asian currencies traded mixed in early trade, with the rupiah and renminbi leading gains, while the Thai baht was the weakest among the listed currencies.

The dollar index held at 101.78 after falling 0.2% on Tuesday. The greenback has stayed under pressure after hitting a three-week low in the previous session, as lower Treasury yields and crude prices reduced its appeal.

why it matters

The source of support matters as much as the level: capital inflows from the IPO and central bank action suggest efforts to smooth volatility. Dollar weakness linked to lower Treasury yields and oil generally supports Asian currencies.

market impact

Rupee and Asian currencies: IPO inflows and weaker dollar support INR

tags

instruments