Rupee opens 13 higher at 81.94 against the US dollar
inflation data raised hopes that the Federal Reserve was close to the end of its rate hike cycle. The dollar index, which measures the US currency against six major rivals, was down to 99.64, the lowest since April 2022.
On Thursday, the rupee ended 18 paise at 82.07 a dollar. Data showed the producer price index in the US climbed 0.1% in June, its smallest year-on-year gain since August 2020 and followed a 0.9% increase in May.
Cooling inflation helped increase optimism that the Fed will stop hiking rates after an expected 25 basis points rate increase later this month. Crude oil prices rose on tighter supply amid issues in Libya and Nigeria and easing US inflation, which is expected to end interest rate hikes in the world’s biggest economy.
Brent crude futures rose 0.12% to $81.46 per barrel, while US West Texas Intermediate crude futures rose 0.20% to $77.04. On the domestic front, the Indian equity benchmark indices, Sensex and Nifty were trading higher in the pre-opening session.
On Tuesday, the Foreign institutional investors (FIIs) net bought Indian equities worth ₹2,237.93 crore, while Domestic Institutional Investors (DIIs) net sold shares to the tune of ₹1,196.68 crore, as per provisional data available on the exchanges. (With inputs from Reuters) Catch Live Market Updates hereGet the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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