The Indian rupee opened lower at 95.48 per dollar on August 17, after the Reserve Bank of India shortened the deadline for its discounted forex swap facility by a month. This was a slight drop from Friday’s close of 95.43.
Because the RBI closed the FCNR window earlier, the rupee was expected to open around 95.57 unless the central bank intervenes early in NDF or OTC markets. Market participants anticipate further weakening.
Brent crude is trading at about $89.05 per barrel, and the dollar index sits at 99.53, both of which support the rupee’s weaker outlook. Exporters plan to hedge by selling dollars at 95.75 for intra‑day exports, while importers look to buy on dips.
Across Asia, most currencies were firmer against the dollar. The Indonesian rupiah rose 0.28%, the Taiwan dollar 0.27%, the South Korean won 0.36% and the Japanese yen 0.18%.
Thailand, Malaysia and Singapore also saw gains of 0.14%, 0.08% and 0.04% respectively, whereas the Philippine peso fell 0.21%. The Chinese renminbi was almost flat, up only 0.004%.
The U.S. dollar index, which tracks the greenback against a basket of six currencies, dipped 0.1% to 99.519, its lowest level for the month.
Overall, the rupee’s slide reflects the RBI’s policy move and global market conditions, and traders are closely watching the dollar index and oil prices for further direction.