World news

Indian Rupee Gains Ground Against US Dollar for Third Consecutive Day

Rupee Appreciates as Crude Oil Prices Ease and US Dollar Weakens

The Indian rupee continues its upward trajectory for the third consecutive day, strengthening by 4 paise to 83.14 against the US dollar in early trade on Thursday. This surge is attributed to a combination of easing crude oil prices and a weakened US currency.

! Market Sentiments and Concerns

Despite the positive movement, subdued sentiments in the domestic equity markets and apprehensions regarding foreign fund withdrawals have somewhat tempered the rupee’s ascent. Analysts in the foreign exchange market suggest that these factors have prevented a significant surge in the Indian currency.

! Trading Range and Opening Figures

At the interbank foreign exchange, the rupee initiated trading at 83.17 and subsequently fluctuated within the range of 83.13 to 83.17 against the US dollar. Ultimately, the Indian currency settled at 83.14 against the dollar, marking a gain of 4 paise from its previous closing figure.

! Upcoming Economic Data

India’s inflation data is slated to be released after market hours, potentially influencing further market movements.

! US Consumer Inflation Outlook

In parallel, the headline US Consumer Inflation Index (CPI) is projected to experience a 0.3% month-on-month increase. The more pivotal core measure is also expected to rise at the same rate. These forecasts are based on a Reuters poll of economists.

! Federal Reserve Rate Hike Expectations

These data releases occur in a context where investors have reduced the probability of a rate hike by the Federal Reserve at the upcoming meeting to less than 10%.

The rupee’s recent surge is underpinned by a combination of factors, including oil price trends and the performance of the US dollar. As market dynamics continue to evolve, analysts are closely monitoring various economic indicators for potential impacts on currency movements.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button