Rupee opens 1 paise higher at 87.86/USD as Asian currencies gain

The Rupee opened 1 paise up at 87.8675 against the US dollar on October 27.

The Indian rupee opened 1 paise up at 87.8675 against the US dollar on October 27, compared with 87.8513 at the previous close, as most Asian currencies strengthened.

According to Bloomberg data, the South Korean won rose 0.46%, the Thai baht gained 0.27%, the Taiwanese dollar increased 0.25%, the offshore Chinese renminbi was up 0.20%, and the Malaysian ringgit gained 0.17%.

Currency experts said traders will monitor the US Federal Reserve’s commentary following a widely anticipated rate cut and the magnitude of overseas fund flows.

Amit Pabari, Managing Director at CR Forex Advisor, noted that a delayed US inflation update added another twist to the market. The Consumer Price Index rose just 0.3% in September, slightly below expectations.

“That small miss has rekindled hopes that the Federal Reserve may announce further rate cuts, possibly even one in December. Lower US interest rates generally weaken the dollar, reducing the incentive for global investors to park funds there. For the rupee and other emerging-market currencies, this could provide some breathing room in the weeks ahead,” he said.

Abhishek Goenka, Founder and CEO of India Forex Asset Management (IFA Global), added, “The rupee is likely to trade in a range of 87.60–87.90 with sideways movement.”