Indian rupee opens 5 paise lower at 90.96, likely RBI action eyed

Indian rupee

The Indian rupee opened 5 paise lower as the dollar gained slightly overnight, while traders stayed on the sidelines for any likely action from the Reserve Bank of India (RBI), awaiting further cues to take fresh positions on the rupee.

The local currency was trading at Rs 90.96 to the dollar, as compared to Rs 90.91 in the previous trading session.

The currency has faced pressure throughout this week, moving in a narrow range, as importers move to hedge their positions, while the RBI has likely sold dollars continuously all through the week, to prevent the rupee from falling beyond the Rs 91 per dollar mark, according to traders.

“Technically, the 90.60–90.80 range continues to act as an important support zone for USD/INR. As long as this region holds, the broader direction remains upward. The rupee may stay steady for some time under the RBI’s watch,” Amit Pabari, the managing director at CR Forex Advisors, said.

Globally, the risk sentiment was weak, as market participants were digesting the change in the tariff structure by the United States, and elevated Brent crude prices driven by tensions between the US and Iran.