The Indian rupee opened 2 paise higher against the US dollar on Thursday amid a steady greenback after the higher-than-expected US inflation data. The local currency opened at 82.97 a dollar as compared to previous close of 82.99.
The dollar index was flat at 104.78, roughly at the same level it was prior to the US inflation data. US Treasury yields jumped following the data, but retreated and are now at levels lower than before the inflation reading.
On Wednesday, the rupee depreciated 7 paise to close at 82.99.
The US consumer price index rose by 0.6% month-on-month in August, the largest increase since June 2022. In the 12 months through August, the CPI accelerated 3.7% after climbing 3.2% in July.
Read here: US inflation accelerates to 3.7% in August driven by rising gasoline prices
Analysts expect the US Federal Reserve will not raise interest rates at its meeting next week.
Investors will now focus on the European Central Bank rate decision later in the day.
Crude oil prices traded higher on Thursday as markets refocused on expectations of tight crude supply for the rest of 2023.
Brent futures rose 0.36% to $92.21 a barrel, while US West Texas Intermediate crude (WTI) gained 0.36% to $88.84.
On the domestic front, the Indian benchmark equity indices, Sensex and Nifty were trading higher in the pre-opening session.
On Wednesday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹1,631.63 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹849.86 crore, as per provisional data available on the exchanges.
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Updated: 14 Sep 2023, 09:08 AM IST