Rupee Opens Weaker at 90.43 per Dollar; Markets Await RBI Signals

The Indian rupee opened 16 paise lower at 90.43 against the US dollar in early trade on Wednesday, retreating from the sharp gains recorded in the previous session. The local currency had ended Tuesday’s trade at 90.27 per dollar, supported by optimism around developments in India–US trade relations.

Market participants attributed the initial weakness to dollar demand from importers, especially after the rupee strengthened past the 90 mark in the previous session. Traders said corporate hedging activity picked up at lower levels, leading to mild pressure on the domestic currency at the open.

RBI Policy Meeting in Focus

Attention remains firmly on the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, with the policy decision scheduled later this week. Market expectations suggest the central bank is likely to keep interest rates unchanged, while outlining its stance on liquidity management amid evolving global and domestic conditions.

Currency markets are closely tracking cues on liquidity operations, given their potential impact on near-term rupee movement and money market rates.

Global Cues and Market Backdrop

On the global front, the US dollar index was steady in early Asian trade, while crude oil prices remained range-bound, offering limited directional cues to emerging market currencies. Analysts noted that foreign portfolio flows, global interest rate expectations, and geopolitical developments continue to influence sentiment.

Despite the early dip, traders expect the rupee to remain range-bound in the near term, with volatility driven by policy signals from the RBI and movement in global financial markets.

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