Mumbai, Jan 10,2024: The Indian rupee recovered early losses to end higher for a sixth straight day on Wednesday as expectations rose about more foreign funds flowing in.
The rupee settled at 83.0350 vis-a-vis the U.S. dollar, its highest closing level since December 15 up from 83.1150 in the previous session.
The Indian currency opened lower and fell to an intraday low of 83.18 earlier in the day, before rising again to an over three-week high of 82.98 in the session.
“The rupee experienced volatility, ranging between 83.18 (on the weaker side at the opening) and 82.98 (on the higher side after an initial dip below 83.15). The rupee gained, with buyers becoming more assertive within the range-bound movements. The overall trend remains sideways, and rupee movements are influenced by range-bound volatility,” said Jateen Trivedi, VP Research Analyst, LKP Securities.
He said that the upcoming US CPI data, scheduled for Thursday evening, is expected to play a crucial role in determining the trend of the US dollar, with potential effects on the rupee as well.
The U.S. consumer inflation data will indicate the probability of a Fed interest rate cut to spur growth. Investors see a high probability of rate cuts going ahead if consumer inflation comes down.