Rupee opens marginally higher as US jobs data dents dollar demand
The Indian rupee opened marginally higher after falling for four straight sessions as the dollar declined after mixed US jobs data on Friday.
The rupee opened at 82.72 to a dollar.
The rupee opened marginally higher after falling for the fourth straight session with the dollar losing its charm after mixed US jobs data on Friday.
At 9.15am, the Indian currency was trading at 82.71 to a dollar, up 0.16 percent from its previous close of 82.84. The rupee opened at 82.72 to a dollar.
The Reserve Bank of India’s (RBI) monetary policy meeting is scheduled from August 8-10. Additionally, the CPI inflation for July, industrial production, and manufacturing production data for June will be released on August 11.
Globally, during this week, the market’s attention has shifted towards inflation data emanating from the world’s two largest economies, namely the US and China. Subsequently, all eyes will be on the US Producer Price Index (PPI) as well.
“Foreign Portfolio Investor (FPI) flows and the RBI’s persistent pressure on the USD may shape the currency’s performance, making it less likely for the rupee to depreciate beyond the 82.80-90 range. The prevailing sentiment suggests a potential move towards the 82.20-82.00 mark, indicating a degree of stability in the currency’s outlook. In this context, exporters are advised to capitalise on any potential upticks in the dollar-rupee and explore selling opportunities, while importers are encouraged to exercise caution and wait for suitable hedging options,” said Amit Pabri of CR Forex in a note to investors.
Asian currencies were trading mixed in the morning of August 7. The South Korean won gained 0.67 percent, Philippines peso 0.16 percent, and Taiwan dollar climbed 0.08 percent. Among losers, China’s Renminbi lost 0.26 percent, Japanese yen 0.24 percent, and Thai Baht 0.06 percent.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 102, down 0.06 percent from its previous close of 102.02.
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