Highlights:
- Rupee opens 19 paise lower at 95.54 per US dollar.
- Dollar demand from importers continues to pressure the local currency.
- Foreign equity outflows weigh on market sentiment.
- Analysts expect rupee to trade between 94.75 and 95.75.
- Exporters may increase dollar sales near the 95.70 level.
New Delhi, June 10: The Indian rupee started Wednesday’s trading session on a weaker note, opening 19 paise lower at 95.54 against the US dollar compared to its previous close of 95.35. The domestic currency remained under pressure amid a subdued global risk environment, persistent foreign fund outflows, and steady demand for dollars from importers.
Market participants said uncertainty in global financial markets has reduced appetite for emerging-market assets, prompting investors to seek the safety of the US dollar. The trend has impacted several Asian currencies, with the rupee also facing headwinds despite stable domestic economic indicators.
According to market experts, continuous dollar buying by importers has further weighed on the local currency. Import-dependent sectors, particularly oil and manufacturing companies, have remained active buyers of the greenback, keeping demand elevated throughout the trading session.
Brokerage firm Finrex expects the rupee to trade within a range of 94.75 to 95.75 during the day. Analysts noted that while near-term sentiment remains cautious, exporter-related dollar sales could provide support if the rupee weakens toward the 95.70 mark.
“The currency is currently caught between external pressures and domestic support factors. Foreign portfolio outflows and global uncertainty are negative for the rupee, but exporter inflows may limit sharp depreciation,” a currency analyst said.
Meanwhile, traders are closely monitoring global economic developments, including movements in the US dollar index, crude oil prices, and foreign institutional investor activity. Any significant shift in these indicators could influence the rupee’s direction in the coming sessions.
The Reserve Bank of India is also expected to keep a close watch on currency market volatility. While no immediate intervention is anticipated, market participants believe the central bank may step in if fluctuations become excessive.
Despite the day’s weak opening, analysts remain cautiously optimistic that supportive exporter flows and stable macroeconomic fundamentals could help the rupee avoid deeper losses in the near term.
