Rupee opens flat at 83.23 against the US dollar
rupee ended 8 paise lower at 83.23 a dollar. The rupee hit its record level of 83.29 in October 2022. Also Read: India could be the largest beneficiary: JPMorgan CEO explains why as companies look options beyond China Asian currencies were mostly weaker with the Korean won leading losses.
US Treasury yields have been elevated following hawkish commentary from some Federal Reserve officials, Reuters reported. Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday that he saw a 40% chance of the US needing "meaningfully" higher rates to beat inflation. Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! “USDINR is expected to move higher towards 83.40 on strong dollar.
The hawkish comments from the Fed members would also support the dollar to hold its gains. Further, equity outflows would also weigh on the rupee," ICICI Direct said in a note. Meanwhile, investors will remain cautious ahead of key US GDP and core PCE data due later this week.
“USDINR is expected to move towards 83.40 , as long as it holds above the 83.00. Above 83 .40, it can test 83.50," ICICI Direct added. Crude oil prices traded higher, pressurising the rupee.
Brent futures gained 0.94% to $94.84 a barrel, while US West Texas Intermediate (WTI) crude rose 0.94% to $91.24 a barrel. Also Read: Record demand for sovereign gold bonds despite price rise On the domestic front, the Indian benchmark equity indices, Sensex and Nifty 50 were trading flat-to-lower in the pre-opening session. On Tuesday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹693.47 crore, while Domestic Institutional Investors (DIIs) net purchased
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