Akash Jha
The rupee ended modestly higher after slipping for the fourth consecutive day, with the dollar losing its allure following mixed US job data on Friday.
The Indian rupee finished at 82.75 to the dollar, up 0.11 percent from its previous close of 82.84. The rupee opened at 82.72 to the dollar.
The Reserve Bank of India’s (RBI) monetary policy meeting is set for August 8-10. On August 11, the CPI inflation for July, industrial production, and manufacturing production figures for June will be announced.
This week, the market’s focus has switched to inflation statistics from the world’s two largest economies, the United States and China. As a result, 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 current sentiment implies a likely advance towards the 82.20-82.00 range, indicating a degree of steadiness in the currency’s outlook. In this scenario, exporters are recommended to capitalise on any prospective dollar-rupee upticks and investigate selling opportunities, while importers are advised to exercise prudence and wait for suitable hedging options,” said Amit Pabri of CR Forex in a letter to clients.
On August 7, Asian currencies were trading in a mixed bag. The South Korean won increased by 0.67 percent, the Philippine peso by 0.16 percent, and the Taiwan dollar increased by 0.08 percent. China’s Renminbi fell 0.26 percent, the Japanese yen 0.24 percent, and the Thai Baht 0.06 percent.
The dollar index, which gauges the strength of the US currency against various currencies, was trading at 102, down 0.06 percent from its previous close of 102.02.
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