Rupee opens marginally higher at 83.08 against the US dollar

The Indian rupee opened marginally higher against the US dollar on Tuesday amid a recovery in other Asian currencies. The local currency opened at 83.08 a dollar as compared to previous close of 83.11.

The US dollar index, which measures the currency against six developed-market counterparts, including the yen and euro – slipped 0.1 to 103.24, but remained not far from Friday’s high of 103.68, a level not seen since June 12, Reuters reported.

On Monday, the rupee ended at 83.11 a dollar.

The US 10-year Treasury yields hit the highest since 2007 on bets that a resilient US economy will push the Federal Reserve to keep interest rates higher for longer.

Investors will keep an eye on the Fed Chair Jerome Powell’s comments at the Jackson Hole Economic Symposium from August 24 to 26.

“Rupee is likely to face the hurdle near 83.20 level amid softness in dollar, decline in crude oil prices and improved Asian market sentiments. Dollar is showing some weakness on expectation of disappointing economic data from US. Additionally, investors braced for central bankers gathering at Jackson Hole Symposium for outlook on interest rates,” ICICI Direct said in a note.

It expects USDINR to remain in the range of 82.90-83.20. 

“Only a move above 83.20 would bring fresh buying interest in the pair. Similarly, a move below 82.90 would push the pair towards 82.80 level,” the brokerage said.

Crude oil prices were flat ahead of data later expected to show a draw in US crude oil and gasoline inventories.

Brent crude eased 0,05% to $84.42 a barrel and US West Texas Intermediate crude gained 0.07% to $80.78 a barrel.

On the domestic front, the Indian benchmark equity indices, Sensex and Nifty, were trading higher in the pre-opening session.

On Monday, the Foreign institutional investors (FIIs) net sold Indian shares worth 1,901.10 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of 626.25 crore, as per provisional data available on the exchanges.

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(With inputs from Reuters)

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Updated: 22 Aug 2023, 09:18 AM IST

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