INDIAN RUPEE-Rupee almost flat as oil companies’ dollar bids offset gains in Asian currencies

INDIAN RUPEE-Rupee almost flat as oil companies’ dollar bids offset gains in Asian currencies
INDIAN RUPEE-Rupee almost flat as oil companies’ dollar bids offset gains in Asian currencies

The Indian rupee was little changed on Tuesday as month-end demand for dollars from importers, including local oil companies, offset positive signs of gains in most Asian currencies.

The rupee was trading at 83.43 against the US dollar at 10:35 IST, marginally changed from its previous close of 83.46.

Asian currencies mostly rose, helped by an overall weaker dollar. The offshore Chinese yuan rose slightly to 7.28 after falling to its weakest level since November on Monday.

There appeared to be “slight inflows that are being absorbed,” said a currency trader at a foreign bank. Demand for dollars from local oil companies related to month-end payments also weighed on the rupee’s gains, the trader added.

Crude oil futures have risen more than 5% so far in June and are hovering around their highest levels in two months, buoyed by the prospect of strong summer-driven demand and amid tensions in the Middle East.

A pullback in the Japanese yen and Chinese yuan “has eased pressure on the rupee” and the currency is likely to trade in a range of 83.40-83.55 with sideways price action, the company said in a note. IFA Global forex advisory firm.

Meanwhile, India’s current account balance posted a surplus for the first time in 10 quarters in the January-March period, helped by rising service exports and private transfer receipts.

The country’s balance of payments recorded a surplus of $30.8 billion in the March quarter, compared to a surplus of $5.6 billion a year earlier.

Investors now await statements from Federal Reserve officials and data on U.S. consumer confidence to be released later. (Reporting by Jaspreet Kalra; Editing by Sohini Goswami)

 
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