Indian rupee seen opening higher as oil falls after week of pressure

The Indian rupee is likely to open slightly stronger on Friday as lower oil prices offer some relief after sustained pressure through the week, though traders do not expect much upside because the Reserve Bank of India has been actively supporting the currency. The rupee is seen opening in the 95.38-95.40 range against the dollar after settling at 95.44 on Thursday. Bankers said the rupee's roughly 0.2% weekly decline understates the strain because near-daily RBI intervention has absorbed dollar demand and kept moves contained. They said maturities in the non-deliverable forward market (offshore cash-settled FX derivatives) and solid dollar demand from importers have been key sources of pressure. Brent crude fell more than 2% on Thursday and slipped further in Asian trading to around $86.50 a barrel, helping the rupee at the open even as oil remains supported by uncertainty around the Strait of Hormuz, a key shipping route. ING Bank said the United States appears focused on economic pressure rather than military escalation, but significant obstacles remain before any broader agreement can be reached.

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