Currency Check | Rupee opens with marginal gains at 95.16 per dollar; Asian peers mixed

What happened

The Indian rupee opened slightly stronger at 95.16 per dollar on October 27, compared with Monday's close of 95.19. Asian currencies were mixed, with the Indonesian rupiah down 0.30 percent and the Taiwan dollar up 0.11 percent.

Confirmed

Global impact / market context

A stronger dollar, which means the US currency is worth more against others, can pull money out of India and lift import costs. Oil near $114.72 makes that worse because India buys most of its crude from abroad, which raises costs for companies.

Analyst inference

The dollar index rose back above 102, which means the dollar is stronger versus a basket of currencies, pressuring the rupee. Outward flows for non-allotted JIO IPOs, meaning money sent abroad for share sales, may also weigh on the rupee today.

Analyst inference

What to watch

1. Finrex expects the rupee to open at 95.20, with non-allotted JIO IPO outward flows passing through today, according to the article. Confirmed
2. Exporters are advised to sell into rupee upticks, meaning small rises, and lock in forward premiums above 4 percent, which is the extra rate paid for future dollar purchases. Proposed
3. Importers buying dollars on dips could support the rupee near recent lows, while oil staying near $114.72 and the dollar index above 102 would keep pressure on the currency. Analyst inference

Evidence

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