Rupee at ₹95.45 vs dollar amid US and Iran tensions
The rupee opened lower at ₹95.45 against the dollar on Wednesday, slipping 18 paise overnight.
The drop comes as tensions between the US and Iran shake up global markets, making things a bit uncertain for traders here.
With the RBI's key policy meeting just around the corner, everyone's watching to see if the central bank will step in to steady things.
Traders expect RBI pause at 5.25%
Brent crude oil prices jumped nearly 1% to $97 a barrel after renewed U.S.-Iran hostilities, adding more pressure on markets.
Traders expect the RBI will keep interest rates steady at 5.25% during its June 5 meeting, but a minority expects a rate hike at the June 5 review.
Finrex Treasury Advisors pointed out that without RBI intervention, "With the war showing no signs of ending and monsoon paying truant, the RBI has little choice but to keep rates constant and then introduce a rate hike in the next review... for the present, the rupee has again embarked on the journey of the fall, and we may expect another fall today if the RBI does not protect it further."