Mumbai, Aug 27: The Indian rupee opened marginally lower against the US dollar on Thursday, as investors remained cautious in the absence of fresh market triggers. Softer global crude oil prices provided some support, while demand for dollars from corporates continued to weigh on the domestic currency.
The rupee opened at Rs 95.44 per US dollar, compared with Rs 95.41 in the previous trading session, marking a decline of three paise.
Indian currency and debt markets were closed on Wednesday due to a public holiday, leaving investors to assess global developments and domestic market cues at the start of Thursday’s session.
Market participants continued to closely watch the Reserve Bank of India’s actions in the foreign exchange market. The central bank has been actively monitoring currency movements and is expected to remain attentive to excessive volatility in the rupee.
Lower Brent crude prices offered some relief to the Indian currency, as cheaper oil can help reduce pressure on India’s import bill and external balances. However, steady corporate demand for dollars limited the gains.
Investors are also keeping an eye on global developments, including movements in the US dollar, crude oil prices, foreign fund flows and expectations surrounding US monetary policy.
The rupee is likely to remain sensitive to these factors in the near term, with market participants closely monitoring the RBI’s stance and developments in global financial markets.
Overall, the domestic currency began the session on a cautious note, with subdued investor activity and dollar demand keeping the rupee near recent levels.
