The Indian Rupee opened slightly higher against the US Dollar today, trading at 83.23, up 0.03 percent from its previous close at 83.26. The currency is anticipated to remain stable as the Reserve Bank of India (RBI) continues to sell dollars. However, uncertainty looms over how the RBI will manage the impending $5 billion short position due on October 23.
Analysts are closely monitoring Jerome Powell, Chair of the Federal Reserve of the United States, as he is scheduled to deliver a speech on October 19 at 9:30 PM IST. His remarks are expected to provide insights into the future movement of US interest rates, a key factor impacting global currencies.
Mixed performances were observed among Asian currencies, with diplomatic optimism dwindling due to a tragic explosion in Gaza. The visit of US President Joe Biden to Israel and Jordan faced disruptions following the Gaza hospital explosion, along with the withdrawal of Arab leaders from a planned meeting.
In the broader Asian currency landscape, the China Offshore spot gained 0.23 percent, the South Korean won rose by 0.22 percent, and the Japanese yen increased by 0.09 percent. However, the Malaysian ringgit fell by 0.13 percent, and the Indonesian rupiah lost 0.08 percent.
The dollar index, which measures the strength of the US currency against major global currencies, was trading at 106.194, marking a slight decrease of 0.05 percent from its previous close at 106.25.
The fluctuations in the Indian Rupee’s exchange rate against the US Dollar and the dynamics in the broader Asian currency market underscore the sensitivity of financial markets to geopolitical events and central bank policies.
Sources By Agencies