Rupee Hits Two-Month High as RBI's Foreign Deposits Exceed Expectations

The Indian rupee opened higher against the US dollar on September 3, after the central bank's foreign-currency non-resident bank deposits surpassed market expectations. The rupee rose by 67 paise to open at 94.30 per dollar, compared to Wednesday's close of 94.97.

According to Finrex, the rupee will remain within a range of 94.00 to 94.75, with upticks expected to be sold as the Reserve Bank of India (RBI) has sufficient funds to support the currency. RBI buying dollars is necessary for higher levels to be reached, which may occur at 93.50 or lower levels.

In other Asian currencies, the Malaysian ringgit and Thai baht showed gains against the US dollar, while the Indonesian rupiah weakened by 0.107%. The dollar index fell 0.05% to 99.54, with the euro and yen also rising slightly.