Rupee Vs. USD: Indian rupee remains unchanged against the USD

13 Jun 2023 , 12:31 PM

The Indian rupee opens unchanged against the US dollar at 82.43, supported by positive domestic macroeconomic indicators, while rising crude oil prices exert pressure. The US dollar index remains stable near 103.50 ahead of crucial US inflation data and the Federal Reserve’s impending decision on interest rates.

Yesterday, the rupee closed marginally higher at 82.43 against the US dollar due to a weaker greenback and a decline in crude oil prices.

The offshore Chinese yuan hits its lowest level since November, reaching 7.1780 against the dollar. This decline is attributed to the People’s Bank of China setting the yuan midpoint weaker than expected and reducing the seven-day reverse repo rate, subsequently boosting USD/CNH.

Crude oil prices experience a moderate increase, adding pressure to the Indian rupee.  Official data reveals that India’s annual retail inflation drops to 4.25% in May from 4.7% in April. This decline in inflation strengthens expectations of the Reserve Bank of India (RBI), maintaining interest rates at their current level.

Additionally, India’s Index of Industrial Production (IIP) shows a growth of 4.2%, according to the Ministry of Statistics and Programme Implementation.

Foreign institutional investors (FIIs) sell Indian shares worth Rs626.62 crore, while domestic institutional investors (DIIs) purchase shares worth Rs1,793.85 crore, based on available exchange data.

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