Rupee opens flat against US dollar in thin holiday trading

Meanwhile, Brent oil prices remained steady at $78.87 per barrel amid concerns over Red Sea tensions and shipping disruptions by Houthi Groups, potentially affecting Suez Canal deliveries. Despite OPEC+ production cuts, record-breaking US oil production helped cool oil prices in 2023.

The Indian rupee on December 26 opened flat against the US dollar in thinly traded markets due to many traders being on leave for the year-end holiday.

At 9.10am, the home currency was trading at 83.17 a dollar, down 0.02 percent from the previous close of 83.15.

RBI’s meeting minutes emphasised caution regarding volatile food prices. Rate setters refrained from altering the policy stance due to uncertainties in the inflation trajectory, aiming to avoid confusion among investors, the minutes of the monetary policy meeting showed on Friday.

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Brent oil prices remained steady at $78.87 per barrel amid concerns over Red Sea tensions and shipping disruptions by Houthi Groups, potentially affecting Suez Canal deliveries. Despite OPEC+ production cuts, record-breaking US oil production helped cool oil prices in 2023.

In thin holiday trading, the dollar faced challenges in gaining strength due to the easing inflation in the US. This situation may provide the Fed with the opportunity to cut interest rates next year, traders said.

Asian currencies were trading higher. South Korean won was up 0.34 percent, Malaysian ringgit gained 0.33 percent, Taiwan dollar .27 percent, Indonesian rupiah rose 0.27 percent, and Thai Baht, Singapore dollar, and Japanese yen were up 0.12 percent each.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.586, down 0.11 percent from its previous close of 101.698.

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