- Indian Rupee on track for a second straight day of gains
- US dollar stabilizes in early European trade
- Quiet market awaits more cues from US CPI data
- Investors eye key US CPI inflation figures
Indian Rupee strengthened for the first time since last week being on track for a second straight day of gains. At the foreign exchange market, the value of the Rupee appreciated by 6 paise on Tuesday settling up +0.07% at 79.52 against the US dollar. The USD/INR exchange rate was seen trading on Wednesday within a trading range of 79.52 and 79.35.
Currently, one US dollar buys 79.40 rupees, up 0.15% as of 6:55 AM UTC.
In the US, the headline inflation reading is expected to peak at 9.1% year-over-year. Consumer price inflation is expected to have risen slightly in July by 0.2% compared to 1.2% in June. A falling rate of inflation will ease some of the upward pressure on interest rates, which in turn will weigh in on the dollar exchange rate.
The dollar index, which gauges the greenback’s strength against a basket of major currencies settled down -0.07% at 106.30.
Meanwhile, in China the annual inflation rate grew 2.7% in July from a year earlier, compared to a 2.5% increase in June, the data showed Wednesday. This is the highest inflation reading in two years.
At the same time, the Producer price index (PPI) in China only rose by 4.2% in July, down from a 6.1% reading in June.
Elsewhere, the domestic benchmark equity index NIFTY 50 reopened for trading after being close yesterday on account of Muharram. At the time of writing, NIFTY50 trades down -0.09% to 17,509, after trading in a range between 17,566 and 17,442.
The Indian 10-year government bond yield was seen down -0.42% at 7.317%.
