During the early trading session, the Indian Rupee increased against the US dollar aligning with the positive trend observed in Asian currencies. At 9:10 a.m., the Rupee was quoted at 83.19 against the dollar, indicating a rise of 0.06 percent compared to its closing rate of 83.24. The Rupee started off the day at 83.22 against the dollar.
Market participants are currently awaiting the Reserve Bank of India’s (RBI) monthly monetary policy announcement. The RBI is widely expected to maintain its interest rates for the fourth consecutive time. This decision is significant considering rising food inflation, unpredictable monsoon conditions impacting crop yields, high-interest rates, and surging crude oil prices. The monetary policy committee led by RBI Governor Shaktikanta Das will likely keep the repo rate at 6.5 percent while maintaining their stance on “withdrawal of accommodation.”
About currencies, several were experiencing an upward trajectory in trading. The Korean won saw a gain of 1.16 percent, while the Japanese yen exhibited a 0.37 percent increase, and the Taiwan dollar recorded a modest uptick of 0.25 percent.
Moreover, there was a 0.2 percent increase in the rupiah, Singapore dollar, China renminbi, and Malaysian ringgit. Additionally, the Philippines peso also showed an advancement of 0.12 percent.
Regarding the dollar index, which measures the strength of the US dollar against currencies, it was noted at 106.535, indicating a decrease of 0.26 percent, from its previous closing level of 106.80.