Rupee opens 1 paise lower at 94.69 against US dollar

The Indian rupee opened marginally weaker at 94.69 against the US dollar on Tuesday, 23 June, slipping by 1 paise despite support from softer crude oil prices amid progress in US-Iran negotiations.

According to a Reuters report, market participants said Monday's decline in the rupee was not driven by any significant flow-related activity and largely ran counter to prevailing market expectations, catching traders by surprise.

Currency dealers noted that the focus has gradually shifted from oil prices to the US Federal Reserve's policy outlook. Rising expectations of a Fed rate hike in September are beginning to weigh on Asian currencies, including the rupee, they said.

"It appears the risk for the rupee is now shifting from oil to the Fed," a currency trader at a private sector bank told Reuters. The trader added that, with Brent crude largely remaining below the $80-per-barrel mark, elevated US Treasury yields have become a bigger concern for the domestic currency.

According to Reuters, exporter hedging activity has increased in recent sessions, although underlying demand for dollars remains firm.

Meanwhile, US Treasury yields moved higher on Monday, with the benchmark two-year yield touching a 16-month high as investors priced in the possibility of further interest-rate hikes later this year. Fed funds futures currently indicate nearly a 75% probability of a rate increase by September, adding pressure on emerging-market currencies.

Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Log in to our website to save your bookmarks. It'll just take a moment.

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.