Rupee rises 9 paise to open at 82.28 against US dollar

The dollar fell to near a three-week low to the euro and a one-month low versus sterling, as cooling US inflation cemented the view that the Federal Reserve will skip an interest rate hike.

The dollar index, which measures the currency against six major peers, was little changed at 103.26, after dipping to the lowest since May 22 overnight at 103.04.

On Tuesday, the Indian rupee ended 5 paise higher at 82.37 a dollar.

The US consumer price index (CPI) showed an annual increase of 4% in May, slowing from 4.9% in April. 

“The rupee is likely to appreciate for the day amid a weak US dollar and optimistic global market sentiments. Further, US inflation data strengthened bets that the Federal Reserve may keep interest rates unchanged in its meeting due later in the day,” ICICI Direct said.

It expects USD/INR to face a hurdle near 82.45 levels and move downward towards the level of 82.30.

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Crude oil prices traded lower after data showed a rise in US crude stocks, signalling weak demand.

Brent crude futures eased 27 cents, or 0.4%, to $74.01 a barrel by 0019 GMT. U.S. West Texas Intermediate (WTI) crude was at $69.13 a barrel, down 29 cents, or 0.4%.

On the domestic front, the Indian benchmark equity indices, Sensex and Nifty were trading flat-to-lower in the pre-opening session.

On Monday, the Foreign Institutional Investors (FII) purchased Indian shares worth ₹1,677.60 crore, while the Domestic Institutional Investors (DII) sold Indian shares worth ₹203.32 crore, as per the data on the exchanges.

(With inputs from Reuters)

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Updated: 14 Jun 2023, 09:13 AM IST