Rupee Weighed Down by Dollar Demand and Oil Prices
The Indian rupee opened lower against the US dollar on August 13, due to persistent demand for the greenback from hedgers. The currency began trading at 95.36 per dollar, a slight decline from Tuesday's close of 95.33. According to Finrex, the combination of high oil prices and Middle-East uncertainty limited the rupee's upside potential, while India's strong external liquidity provided some support.
Oil prices remained near $88 per barrel, contributing to downward pressure on the rupee. The RBI has been intervening in the market to stabilize the currency, backing it at 95.41/45 despite oil demand pushing it lower. Exporters may continue to sell the dollar at around 95.40 until oil prices drop below $90.
Asian currencies generally traded higher against the US dollar on August 13, with the South Korean won up 0.28%, the Taiwan dollar 0.18%, and the Thai baht 0.09%. The Japanese yen and Singapore dollar also gained around 0.06% each, while the Indonesian rupiah fell 0.09% and the Philippine peso slipped 0.04%.