Rupee opens 5 paise higher at 81.99 against the US dollar
US Federal Reserve is nearing the end of its interest rate-hiking cycle. The Fed is expected to raise rates one last time next week by 25 bps, followed by a long pause, Reuters reported. Asian currencies were higher during the day, while equities were mostly lower despite the positive session for their US peers.
On Monday, the rupee closed 13 paise higher at 82.04 a dollar. Also Read: Weakening US dollar index may boost FPI liquidity in Indian market; largecaps to benefit, say analysts ICICI Direct expects USDINR to consolidate in a narrower range of 81.90-82.25 today. It believes only close above 82.25 it would rally towards 82.40.
“Rupee is expected to depreciate amid re-bounce in dollar. The expectation of better retail sales number from US could support the dollar to erase some of its earlier losses. Further increasing probability of 25 bps interest rate hike in July by the Federal reserve could also provide enough strength to the dollar," ICICI Direct said in a note.
Meanwhile, weaker crude oil prices and persistent FII flows could limit the downside in the rupee, it added. Crude oil prices rebounded aft the previous session’s fall. Brent crude gained 0.19% to $78.65 a barrel, while US West Texas Intermediate crude rose 0.26% to $74.34 a barrel.
Also Read: Rupee as a reserve unit has a long way to go On the domestic front, the Indian benchmark equity indices, Sensex and Nifty, were trading at record high levels. On Monday, the Foreign institutional investors (FIIs) net bought Indian shares worth ₹73.00 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹64.34 crore, as per provisional data available on the exchanges. Catch Live Market Updates hereGet the best recommendations on
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