Rupee opens 11 paise higher at 81.71 against the US dollar
US Federal Reserve meeting, due on Wednesday. S&P Global said its flash US Composite PMI index, which tracks manufacturing and service sectors, fell to a reading of 52 in July from 53.2 in June. The data reinforced expectations that the near-certain rate hike by the US central bank this week would be the last of the current cycle, Reuters reported.
The rupee closed at 81.82 on Monday. “For the day, USDINR is expected to find support near 81.60 and rise back towards the 82.00 mark ahead of the key FOMC meeting due this week. Further, expectation of better economic number could limit the downside in the pair," ICICI Direct said.
USDINR is likely to find support near 81.60 and move back towards 82.00. Only a move below 81.60 would open the doors towards 81.40, it added. Crude oil prices traded higher amid signs of tighter supplies and pledges by Chinese authorities to shore up the economy. Brent futures gained 0.13% to $82.85 a barrel, while US West Texas Intermediate (WTI) crude rose 0.17% to $78.87.
On the domestic front, the Indian equity benchmark indices Sensex and Nifty opened higher. On Monday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹82.96 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹934.87 crore, as per provisional data available on the exchanges. (With inputs from Reuters)Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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