Indian rupee seen opening slightly higher as lower oil offers relief

The Indian rupee is expected to open modestly stronger on Friday around 95.38-95.40 per dollar after closing at 95.44 on Thursday, as a drop in oil prices provides some relief following a week of pressure. Bankers and traders said the Reserve Bank of India's near-daily intervention, likely through state-run banks, has kept the currency in a tight range and masked deeper weakness that would otherwise have resulted from sustained dollar demand from importers and hedgers, as well as maturities in the non-deliverable forward market. Brent crude, which had briefly moved above $90 earlier in the week, fell more than 2% on Thursday and traded near $86.50 in Asia, helping the rupee at the open. Traders said upside may remain limited because the RBI has been actively supporting the currency, even as easing expectations of a near-term Federal Reserve rate hike offer some support to Asian currencies.

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