Rupee opens 3 paise up at 87.94/USD as Asian currencies strengthen

The local currency opened at 87.9413 against the US dollar, as compared to 87.9725 against the greenback at previous close.

Indian rupee opened 3 paise up on October 20 following the strengthening Asian currencies in the early market trade.

The local currency opened at 87.9413 against the US dollar, as compared to 87.9725 against the greenback at previous close.

Currency experts said that traders will focus on the Reserve Bank of India after it has supported the currency last week and updates on the potential updates on the trade talks between India and US.

The selling of dollars by the RBI's last week helped the rupee post its best weekly performance in nearly four months.

The rupee was further buoyed by US President Donald Trump's comment that Prime Minister Narendra Modi promised to stop Russia crude imports. The Indian government has not yet confirmed the pledge.

"If RBI sustains the current intervention pace and the global risk sentiment hold the rupee could consolidate between 87.75 to 88.20 in the near term as market awaits for the talks to conclude between the US and India and follows the sentiment on talks between US and China which is still in doldrums," Anil Kumar Bhansali Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.

According to the Bloomberg data, Asian currencies such as Taiwanese Dollar was up 0.17 percent against the US dollar, Phillipene Peso was up by 0.12 percent, South Korean Won up by 0.11 percent, Singapore Dollar was up by 0.09 percent, and Hong Kong Dollar by 0.04 percent.

The money markets including currency and Indian bond market will remain shut on October 21 and October 22 on account of Diwali Amavasya (Laxmi Pujan) and Vikram Samvant New Year, respectively.