Rupee Opens Softer at 90.22 Against Dollar Amid Global Uncertainty

India’s currency market began the day on a subdued note as the rupee opened at 90.22 against the US dollar, down 0.06% from the previous close. The slight weakness comes amid persistent global dollar strength, geopolitical uncertainties, and continued foreign portfolio investor (FPI) outflows.

Market participants suggest that while domestic fundamentals remain supportive, external pressures are weighing on the rupee. Traders anticipate range-bound movement, with the Reserve Bank of India (RBI) expected to step in if volatility spikes. The cautious tone mirrors broader risk-off sentiment across emerging markets.

Key Highlights

• Opening Level: Rupee at 90.22 per US dollar, down 0.06%.
• Global Influence: Dollar strength and geopolitical risks pressuring emerging market currencies.
• FPI Outflows: Continued foreign investor selling adds pressure on the rupee.
• RBI Role: Central bank likely to intervene to curb sharp volatility.
• Outlook: Currency expected to trade in a narrow band, with support from domestic liquidity.

Sources: Reuters, Reserve Bank of India market updates