Rupee Eye Gains as Dollar Awaits US Inflation Data

12 Feb 2024 , 09:44 AM

Due to the dollar’s decline against its main rivals in the run-up to the U.S. inflation data, the Indian rupee is predicted to open slightly higher on Monday.

The rupee is expected to open between 82.99 and 83.01 against the US dollar, according to non-deliverable forwards, down from 83.0350 during the previous session. There was a holiday in several Asian markets, and the dollar index was down at 103.99.

After a negative week, the rupee was trading between 82.88 and 83.07.

The more significant core measure grew 0.3%, while U.S. consumer prices increased by 0.2% month over month, according to data that is coming on Tuesday.

The information follows a strong jobs report from the United States and consistent resistance against impending rate reduction from Federal Reserve policymakers. There has been a noticeable decrease in anticipation of a rate cut at the March meeting as a result of these two.

The yearly changes to the consumer price index were issued by the U.S. Labour Department on Friday. There was a minor upward revision to the November and October prints, and a downward revision to the headline inflation rate for December.

Later in the day, India is anticipated to release its December inflation figures, which will likely show that retail inflation increased by 5.09%—the lowest rate in three months.

For feedback and suggestions, write to us at [e-mail]