Bengaluru: Indian Rupee It closed near a two-week high on Tuesday as the dollar fell ahead of the US. inflation data and federal Reserverate decision.
The rupee touched a peak of 82.3650 to the dollar before ending at 82.3675, its highest level since June 2, compared with 82.43 in the previous session. It closed with gains for the third consecutive session.
Core of data is expected to show in later days US inflation The rate rose 0.4% for the month, well above the pace needed to bring inflation back to the Federal Reserve’s medium-term target.
The Fed’s interest rate decision is due on Wednesday, with a 23% chance of a futures rate hike, up from more than 60% at the start of the month.
However, inflation data could quickly change that projection if the data surprises on the higher side, said Arnob BiswasFX Research Analyst at SMC Global Securities.
US yields were marginally lower and the dollar index fell to 103.30.
Asian currencies were mixed, with the offshore Chinese yuan hitting a new 2023 low, while the Korean won rose more than 1%.
The yuan fell to 7.1782 against the dollar, its lowest since November 2022, after China’s central bank slashed short-term lending rates to boost the economy.
Yuan move trend that has directional bias on other Asian forex has been broken recently, said Madhavi AroraPrincipal Economist, MK Global.
The rupee touched a peak of 82.3650 to the dollar before ending at 82.3675, its highest level since June 2, compared with 82.43 in the previous session. It closed with gains for the third consecutive session.
Core of data is expected to show in later days US inflation The rate rose 0.4% for the month, well above the pace needed to bring inflation back to the Federal Reserve’s medium-term target.
The Fed’s interest rate decision is due on Wednesday, with a 23% chance of a futures rate hike, up from more than 60% at the start of the month.
However, inflation data could quickly change that projection if the data surprises on the higher side, said Arnob BiswasFX Research Analyst at SMC Global Securities.
US yields were marginally lower and the dollar index fell to 103.30.
Asian currencies were mixed, with the offshore Chinese yuan hitting a new 2023 low, while the Korean won rose more than 1%.
The yuan fell to 7.1782 against the dollar, its lowest since November 2022, after China’s central bank slashed short-term lending rates to boost the economy.
Yuan move trend that has directional bias on other Asian forex has been broken recently, said Madhavi AroraPrincipal Economist, MK Global.