Rupee Appreciates Marginally on Tuesday, But Gains Capped by Strong Dollar and Higher Crude Prices
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.
- 12 Sep
Rupee Appreciates 9 Paise on Fresh Foreign Fund Inflows and Expectations of Better Macroeconomic Data
The Indian rupee appreciated 9 paise against the US dollar on Tuesday, amid fresh foreign fund inflows and expectations of better macroeconomic data. The rupee also benefited from the central bank's dollar selling ahead of the inflation data. Meanwhile, the dollar index rose, but the impact of this on the rupee was limited due to the supportive factors mentioned above. Brent crude futures advanced, which could put some upward pressure on the rupee in the coming days. On the domestic equity market front, the BSE Sensex closed higher, while the NSE Nifty declined marginally. FIIs were net buyers in the capital markets on Monday.
- 12 Sep
Rupee Ends Weaker Despite Dollar Correction, Strong Equities
The Indian rupee depreciated against the US dollar on Tuesday, tracking gains in the greenback. The rupee closed at 83.09 per dollar, down 0.12% from its previous close. The dollar index, which measures the value of the dollar against a basket of six major currencies, rose 0.1% to 92.32. The rupee was weighed down by the rising crude oil prices and the upcoming inflation data. The Reserve Bank of India (RBI) is scheduled to release the inflation data for August on Wednesday. The inflation is expected to remain above the RBI's higher limit of 6%.
- 11 Sep
Rupee expected to appreciate towards 82.80
The Indian rupee is expected to appreciate towards 82.80, as long as it trades below 83.20. The rupee gained on Friday amid likely support from the RBI, but higher crude oil prices and strength in the dollar index restricted it to appreciate below 82.90. Investors will be eyeing this week's key inflation numbers, which may provide more clues for the future interest rate path.