The home currency opened at 82.29 and touched a high of 82.23 a dollar — a level last seen on 9 December. At 9.30am, the domestic currency was trading at 82.23 a dollar, up 0.3% from its previous close of 82.36.
The rupee hit a fresh one-month high against the dollar on Tuesday tracking gains in its Asian peers after the US wage data suggested the Federal Reserve to ease its aggressive rate hikes.
The home currency opened at 82.29 and touched a high of 82.23 to a dollar -a level last seen on December 9. At 9.30am, the domestic currency was trading at 82.23 a dollar, up 0.3 percent from its previous close of 82.36.
“Markets have taken the latest US data as a sign that the economy is gradually slowing, and should that continue, the Fed can step down to a 25bps interest rate hike from 50bps at its next policy meeting. This will keep a lid on the DXY and limit the gains to around 105.50 levels,” said CR Forex advisors in its latest report.
A stronger yuan and falling crude oil also boosted the rupee, dealers said. The yuan was stronger after China reopened its borders with Hong Kong on Sunday for the first time in three years, suggesting an end to its stringent zero-Covid policy.
Falling US Dollar Index, which is trading near a seven-month low due to the Fed’s less hawkish tone and weaker US economic data, falling oil prices – which could help to ease pressure from widening trade deficit, dealers said.
Domestically, stronger purchasing managers index and inflation is into the RBI’s target range also boosting sentiments.
Traders are now awaiting inflation print of the US and India this week for further cues.
“The rupee may stay stronger as the dollar index is lower and the market awaits cues from the Fed on interest rate hikes as also the US inflation figure due on Thursday. Stronger Asian currencies will keep the rupee well bid, though oil companies may come to buy the dollar and ensure that the rupee does not appreciate much. India’s CPI inflation is expected to come around 5.90 percent – same as last month,” said Anil Kumar Bhansali, Head of Treasury Finrex Treasury Advisors LLP.
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