- Indian Rupee weakness resumes as USD to INR pairs eyes the 80 level
- US dollar index trades lower as inflation concerns ease
- Investors eyeing key economic data
- India’s inflation rate is seen staying elevate
Indian Rupee gives back early profits to resume its long-term weakness against the greenback. At the foreign exchange market, the value of the Rupee depreciated by 56 paise on Thursday settling up -0.71% at 79.59 against the US dollar. The USD/INR exchange rate was seen trading on Friday within a trading range of 79.50 and 79.64.
Currently, one US dollar buys 79.60 rupees, up 0.01% as of 6:57 AM UTC.
In India, the rate of inflation is expected to moderately ease in July but still well above RBI’s target of 2% to 6%. India’s inflation rate year-over-year is expected to increase by 6.9% in July down from an increase of 7.01% in June.
At the same time, the month-over-month reading of inflation is expected to increase by 0.3% in July down from the previous reading of 0.52%. The inflation rate likely eased amid food and fuel prices cooling down in the previous month.
Meanwhile, weekly jobless claims rise to 263k in the USA signalling that conditions in the labor market are tightening.
The dollar index, which gauges the greenback’s strength against a basket of major currencies settled down -0.10% at 106.09.
Elsewhere, according to the National Stock Exchange of India, domestic institutional investors were net sellers in the local equity market worth Rs 730 crore while foreign portfolio investors bought shares worth Rs 2,298 crore. The domestic benchmark equity index NIFTY 50 settled up 0.71% at 17,659.00 on Thursday.
The Indian 10-year government bond yield was seen up 0.55% at 7.307%.