Before today’s scheduled bimonthly policy review of the Reserve Bank of India, the rupee opened slightly weaker against the US dollar. At the start, the dollar was trading at 82.59. The domestic currency increased 0.04 percent to 82.58 per dollar in the morning session from its previous close of 82.55 per dollar.
The euro opened slightly down in the light trading market for the second session in a row. This lack of direction can be linked to the fact that there were no significant economic reports from the US this week, and investors were on the defensive in anticipation of the RBI MPC policy conclusion. Although the RBI is anticipated to keep interest rates unchanged, traders will closely examine the commentary on rate trajectory and liquidity, according to CR Forex.
Additionally, traders are looking forward to the US inflation reading on June 13 and the Federal Reserve’s policy review on June 14. On the policy front, economists predict that the RBI will leave interest rates unchanged by 80 to 85 percent, while the US Fed will likely hold rates steady in June and raise them by 52 percent in July.
Trading in Asian currencies was down. The Malaysian ringgit fell by 0.32 percent, the South Korean won by 0.22 percent, the Thai baht by 0.14 percent, the Philippines peso by 0.13 percent, the Taiwan dollar by 0.09 percent, and the Chinese yuan by 0.06 percent. Japanese yen rose 0.22 percent, Hong Kong dollar and Singapore dollar each gained 0.07 percent, and these were the gainers.
The dollar index, which gauges the strength of the US dollar versus other major currencies, was down 0.09 percent from its previous finish of 104.10, trading at 104.001.
