Mumbai rupee consolidated in a narrow range and closed 1 paise higher at 83.52 (provisional) against the US dollar on Friday as support from strong domestic stocks was negated by elevated crude oil prices .
Forex traders said the rupee inched higher as domestic stocks hit fresh all-time highs and a weak tone in the US dollar supported the local unit.
In the interbank exchange market, the local unit was quoted in a narrow range. It opened at 83.53 and touched an intraday high of 83.49 and a low of 83.55 against the US currency during the session.
It finally closed at 83.52 (provisional) against the dollar, 1 paisa more than its previous close.
On Thursday, the rupee fell by 2 paise to 83.53 against the US dollar.
"We expect the rupee to trade with a slight positive bias amid weakness in the US dollar as cooling inflation raises expectations of a September rate cut by the US Federal Reserve," he said. Anuj Choudhary, Sharekhan Research Analyst at BNP Paribas.
The odds of a rate cut in September rose to around 90 percent after the inflation data.
"Positive tone in domestic markets and fresh foreign inflows may also support the rupee. However, a rise in crude oil prices may cap a sharp rise. Traders can take a cue from the IIP and GDP data. India CPI," Choudhary added.
The USD-INR spot price is expected to trade in a range of Rs 83.25 to Rs 83.80.
Meanwhile, the dollar index, which measures the dollar's strength against a basket of six currencies, was trading 0.05 percent lower at 104.39.
"The US dollar fell as inflation cooled more than expected. US CPI rose 3 percent year-on-year in June 2024 vs. forecast of 3.1 percent. Core CPI rose 3.3 percent percent year-on-year in June 2024 versus the forecast of 3.4 percent," Choudhary said.
Brent crude futures, the global oil benchmark, were trading 0.94 percent higher at $86.20 a barrel.
At the domestic stock market, the 30-share BSE Sensex closed the day up 622.00 points, or 0.78 per cent, at 80,519.34 points. The broader NSE Nifty closed down 186.20 points, or 0.77 per cent, at 24,502.15 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,137.01 crore, according to exchange data.
Forex traders said the rupee inched higher as domestic stocks hit fresh all-time highs and a weak tone in the US dollar supported the local unit.
In the interbank exchange market, the local unit was quoted in a narrow range. It opened at 83.53 and touched an intraday high of 83.49 and a low of 83.55 against the US currency during the session.
It finally closed at 83.52 (provisional) against the dollar, 1 paisa more than its previous close.
On Thursday, the rupee fell by 2 paise to 83.53 against the US dollar.
"We expect the rupee to trade with a slight positive bias amid weakness in the US dollar as cooling inflation raises expectations of a September rate cut by the US Federal Reserve," he said. Anuj Choudhary, Sharekhan Research Analyst at BNP Paribas.
The odds of a rate cut in September rose to around 90 percent after the inflation data.
"Positive tone in domestic markets and fresh foreign inflows may also support the rupee. However, a rise in crude oil prices may cap a sharp rise. Traders can take a cue from the IIP and GDP data. India CPI," Choudhary added.
The USD-INR spot price is expected to trade in a range of Rs 83.25 to Rs 83.80.
Meanwhile, the dollar index, which measures the dollar's strength against a basket of six currencies, was trading 0.05 percent lower at 104.39.
"The US dollar fell as inflation cooled more than expected. US CPI rose 3 percent year-on-year in June 2024 vs. forecast of 3.1 percent. Core CPI rose 3.3 percent percent year-on-year in June 2024 versus the forecast of 3.4 percent," Choudhary said.
Brent crude futures, the global oil benchmark, were trading 0.94 percent higher at $86.20 a barrel.
At the domestic stock market, the 30-share BSE Sensex closed the day up 622.00 points, or 0.78 per cent, at 80,519.34 points. The broader NSE Nifty closed down 186.20 points, or 0.77 per cent, at 24,502.15 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,137.01 crore, according to exchange data.
