• Indian Rupee relief rally continued for the second straight day
  • US dollar edges down after US inflation data
  • US CPI inflation eased in July to 8.5% amid lower gas prices
  • Initial jobless claims and PPI data eyed next

Indian Rupee trades firm extending recovery for a second straight day after US inflation report showed price increased have eased. At the foreign exchange market, the value of the Rupee appreciated by 49 paise on Wednesday settling up +0.61% at 79.03 against the US dollar. The USD/INR exchange rate was seen trading on Thursday within a trading range of 79.03 and 79.41 as INR give back from its gains.

Currently, one US dollar buys 79.39 rupees, up 0.45% as of 6:55 AM UTC.

In the United States, the headline CPI inflation eased in July to 8.5% after it raised to 9.1% in June. The gasoline index fell the most in July by 7.7% which help offset the high reading of inflation in the previous month.

The dollar index, which gauges the greenback’s strength against a basket of major currencies settled down -1.04% at 105.19.

Elsewhere, according to the National Stock Exchange of India, domestic institutional investors were net sellers in the local equity market worth Rs 768.45 crore while foreign portfolio investors bought shares worth Rs 1,061.88 crore. The domestic benchmark equity index NIFTY 50 settled up 0.06% at 17,534.75 on Wednesday.

The Indian 10-year government bond yield was seen down -0.49% at 7.274%.

Looking forward, the US initial jobless claims are expected to edge slightly higher to 263k while the Fed’s favorite measurement of inflation indicator – the Producer Price Index (PPI) is expected to ease to 10.4% in July from a year ago.