Rupee opens marginally higher against US dollar

Traders are awaiting the Reserve Bank of India's bi-monthly policy, where rates are expected to remain unchanged for the fourth time.

Indian Rupee opened marginally higher against US dollar tracking gains in the Asian currencies market.

At 9.10am, the home currency was trading at 83.19 a dollar, up 0.06 percent from its previous close of 83.24. The home currency opened at 83.22.

Traders are awaiting the Reserve Bank of India's bi-monthly policy, where rates are expected to remain unchanged for the fourth time. This decision comes despite various economic challenges, such as rising food inflation, an erratic monsoon impacting kharif crops, elevated interest rates, and soaring crude oil prices. The committee led by Shaktikanta Das may likely maintain the repo rate at 6.5 percent and keep the "withdrawal of accommodation" stance unchanged.

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The dollar weakened for the second consecutive day due to declining US Treasury yields, which followed soft economic data. ADP data indicated that US companies added fewer jobs than expected in September, and the new orders component of ISM Services also showed a weaker US economy, raising concerns ahead of the Friday payrolls report.

Asian currencies were trading higher. South Korean won rose 1.16 percent, Japanese yen gained 0.37 percent, Taiwan dollar 0.25 percent, Indonesian rupiah up 0.23 percent, Singapore dollar, China renminbi and Malaysian ringgit were up 0.2 percent each, Philippines peso rose 0.12 percent.

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The dollar index, which measures the US currency’s strength against major currencies, was trading at 106.535, down 0.26 percent from its previous close of 106.80.

(With Bloomberg inputs)