The Indian rupee saw a surge of 11 paise against the US dollar in early trade on Wednesday, rising to 82.01, thanks to a positive trend in domestic equities and foreign fund inflows. Forex traders have highlighted the significance of India’s Consumer Price Index (CPI) data which is expected to be released later in the day, and investors are keeping a close eye on how this will impact the market. The domestic unit opened at 82.08 against the dollar, before rising to 82.01. This marks a rise of 11 paise over its previous close. On Tuesday, the rupee had closed at 82.12 against the US currency.
The dollar index, which measures the greenback’s strength against six currencies, fell by 0.11% to 102.08. Brent crude futures, the global oil benchmark, rose by 0.04% to USD 85.64 per barrel. The market is paying close attention to India’s CPI data, which is expected to be at 5.80%, as compared to the previous rate of 6.44%. Amit Pabari, the MD of CR Forex Advisors, stated that falling inflation will push the Reserve Bank of India (RBI) to pivot on the interest rate hike cycle. This could potentially hurt the rupee going forward due to the narrowing interest rate differential between the US and India.
The domestic equity market saw a rise, with the 30-share BSE Sensex gaining 74.07 points or 0.12% to reach 60,231.79. The broader NSE Nifty also saw a gain of 37.45 points or 0.21% to reach 17,759.75. Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday, purchasing shares worth Rs 342.84 crore, according to exchange data.
Overall, the market is keeping a close watch on India’s CPI data and its potential impact on the economy. With a positive trend in domestic equities and foreign fund inflows, the rupee has shown signs of strength against the US dollar. However, the potential for a change in the interest rate hike cycle could hurt the rupee going forward, causing concern among investors.
Disclaimer: Prre.site is not liable for any damages arising from the use of this website or its content.
