The Indian rupee opened marginally weaker at 94.57 against the US dollar on Tuesday, 30 June, tracking losses in other Asian currencies, while traders said persistent underlying demand for dollars continues to limit the currency’s near-term gains.
The rupee has staged a recovery from its record low of around 97 per dollar touched in mid-last month, supported by a sharp decline in crude oil prices and measures taken by the Reserve Bank of India to stabilise the currency. However, it has largely remained range-bound in recent sessions.
Market participants said the rupee has repeatedly failed to sustain gains beyond the 94.00-94.20 zone despite periodic short-covering in the currency. A stronger US dollar has capped further appreciation, while continued importer hedging and subdued foreign equity inflows have kept demand for the greenback elevated.
On Monday, the rupee strengthened to an intraday high of 94.25 before paring its gains by the close.
