Currency traders said market participants are also awaiting cues from U.S. CPI data due later in the day (Photo: Reuters)
The Indian rupee appreciated 7 paise to 83.90 against the US dollar in early trade on Wednesday, while the American currency retreated from its elevated levels.
Forex traders said the US dollar has weakened against major currencies following the release of the US Producer Price Index (PPI), which came in weaker than expected, leaving the dollar index vulnerable to further correction.
At the interbank exchange rate, the rupee opened at 83.90 against the dollar, registering a gain of 7 paise over its previous close.
On Tuesday, the rupee closed the day unchanged at 83.97 against the US dollar.
The Reserve Bank of India has held the psychological mark of 84.00, said Anil Kumar Bhansali, Head of Treasury and Managing Director, Finrex Treasury Advisors LLP.
“The rupee is expected to open around 83.91 slightly stronger with a narrow range of 83.87/83.97 as the market awaits India’s trade data on July 24,” Bhansali added.
Forex traders said market participants are also awaiting cues from the US CPI data, due out later in the day.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading slightly higher, up 0.10 percent, at 102.66.
Brent crude, the global oil benchmark, rose 0.57 percent to $81.15 a barrel.
In the domestic equity market, the Sensex fell 24.66 points, or 0.03 per cent, to 78,931.37 points. The Nifty fell 11.10 points, or 0.05 per cent, to 24,127.90 points.
Foreign institutional investors (FIIs) were net sellers in capital markets on Tuesday as they offloaded shares worth Rs 2,107.17 crore, according to exchange data.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 14, 2024 | 11:00 am IS
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