Indian rupee seen opening weaker as Brent nears $90 and RBI intervenes

The Indian rupee is expected to open at 95.46-95.48 per dollar on Wednesday after closing at 95.4350, with Brent crude near $90 a barrel, weaker Asian currencies and importer hedging keeping the currency under pressure. The rupee has struggled since moving beyond 95 last Wednesday, as oil prices have climbed 7% this week amid uncertainty over an end to the U.S.-Iran conflict, increasing dollar demand from importers. Traders said the Reserve Bank of India has sold dollars through state-run banks near 95.25-95.30 on Monday and around 95.40 on Tuesday to limit losses, and expect it to resist a move above 95.50. U.S. CPI data due later in the day could shape expectations for a Federal Reserve rate increase next month, with markets divided on the outcome.

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