Forex traders said sideways USD/INR trades are likely ahead of crucial US inflation data.
The rupee appreciated by 11 paise to 79.52 against the US dollar in opening trade on Wednesday, tracking easing crude oil prices and foreign fund inflows. Forex traders said sideways USD/INR trades are likely ahead of crucial US inflation data.
At the interbank foreign exchange, the rupee opened at 79.59 against the US dollar and touched 79.52 in initial deals, registering a rise of 11 paise over the last close. In the previous session on Monday, the rupee had closed at 79.63 against the US dollar.
The forex market was closed on Tuesday on account of ‘Muharram’. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.10 per cent to 106.26.
Global oil benchmark Brent crude futures fell 0.27 per cent to USD 96.05 per barrel. According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, the dollar index remains stable before the US CPI data.
“Asian currencies are stable to slightly weak, awaiting the data. Dips in USD/INR are getting bought as uncertainty, on inflation, war and hikes by US FED remain,” Bhansali said, adding that the range for the rupee is 79.40 to 79.80. “Exporters may sell near to 79.80 levels while importers may buy near to 79.40 to hedge their month-end payables,” Bhansali added.
On the domestic equity market front, the 30-share Sensex was trading 139.31 points or 0.24 per cent lower at 58,713.76 points, while the broader NSE Nifty fell 29.55 points or 0.17 per cent to 17,495.55.
Foreign institutional investors were net buyers in the capital market on Monday, purchasing shares worth Rs 1,449.70 crore, as per exchange data.
(With PTI inputs)
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