Rupee Appreciates Marginally on Tuesday, But Gains Capped by Strong Dollar and Higher Crude Prices

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The Indian rupee appreciated marginally on Tuesday to 82.92 against the US dollar ahead of the release of key economic data. However, its gains were capped by a stronger dollar and higher crude oil prices.

The rupee is expected to face resistance near 83.10 and could move back towards 82.80 amid strong factory output data. Factory output grew to a five-month high of 5.7% in July.

Sticky inflation numbers, which are still above the RBI’s upper band of 6%, could force the RBI to keep liquidity conditions tight. Investors will now be eyeing today’s key US CPI numbers, which could provide more clues to the future rate path.

Overall, the rupee is expected to consolidate in the range of 82.80-83.10 on Tuesday.


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