Indian Rupee Opens Slightly Higher Against US Dollar

Indian Rupee Opens Slightly Higher Against US Dollar. Image/AFP

The Indian rupee opened 2 paise higher against the US dollar on Thursday, starting the day at 82.97 against the previous day’s close of 82.99. This modest gain comes amid a relatively stable greenback following the release of higher-than-expected US inflation data.

Dollar Index and US Treasury Yields

The dollar index remained relatively flat at 104.78, hovering at a level similar to its position before the US inflation data was released. Although US Treasury yields initially increased after the data, they later retreated and are currently at levels lower than those observed before the inflation report.

US Inflation Data and Market Expectations

The US consumer price index (CPI) rose by 0.6% month-on-month in August, marking the largest increase since June 2022. Over the 12 months through August, the CPI accelerated to 3.7%, up from 3.2% in July. Despite this data, analysts anticipate that the US Federal Reserve will not raise interest rates at its upcoming meeting next week. Market attention has also shifted to the European Central Bank rate decision later in the day.

Crude Oil Prices and Domestic Equity Indices

Crude oil prices experienced gains on Thursday as market focus shifted to expectations of tight crude supply for the remainder of 2023. Brent futures rose by 0.36% to reach $92.21 per barrel, while US West Texas Intermediate crude (WTI) increased by 0.36% to $88.84 per barrel.

On the domestic front, Indian benchmark equity indices, Sensex and Nifty, were trading higher in the pre-opening session. In Wednesday’s trading, Foreign Institutional Investors (FIIs) net sold Indian shares worth ₹1,631.63 crore, while Domestic Institutional Investors (DIIs) net purchased shares amounting to ₹849.86 crore, according to provisional data available on the exchanges.

The rupee’s performance will continue to be influenced by global economic developments, especially those related to the US dollar and crude oil prices.

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VoM News Desk

News Desk VoM

VoM News Desk -is an online web portal in jammu Kashmir offers regional, National & global news.