Rupee Tumbles at Open as Oil Prices Weigh on Currency
The Indian rupee started the day with marginal losses against the US dollar on August 19. The currency opened lower at 95.70 per dollar, compared to Friday's close of 95.68.
Despite a deteriorating risk backdrop and high oil prices, which typically weigh on currencies, the rupee is showing resilience. According to Finrex, this is largely due to suspected continued RBI intervention.
RBI may be protecting a certain level, possibly 95.80, for the whole day. However, oil companies will continue buying dollars to fund their payables. Exporters are advised to sell only at the top price or maximum for a week while keeping hedging on the sides. Importers, on the other hand, can buy dips as usual.
Asian currencies traded mixed against the US dollar, with some showing declines and others gains. The Indonesian rupiah declined 0.358%, followed by the Philippine peso, which slipped 0.30%. Other Asian currencies showed similar trends.