In early trade on Wednesday, the rupee traded in a narrow range against the US dollar as high crude oil prices and a strong greenback offset the support from favorable macroeconomic data. Foreign exchange dealers claimed that domestic industrial production and retail inflation data were better than expected and backed up investor confidence.
Investors are waiting for hints from the US CPI statistics to determine the strategy the US FED will use to fight for lower inflation. The rupee was moving within a small range at the interbank foreign exchange. In relation to the dollar, it started at 82.92. Initial trading saw it go as low as 82.95 to the dollar.
The rupee’s closing price on Tuesday was 82.95 against the US dollar. The dollar index, meanwhile, decreased slightly, by 0.05 percent, to 104.65. The benchmark for world oil, Brent crude futures, was trading 0.21% higher at USD 92.25 per barrel.
According to official data issued on Tuesday, India’s industrial production growth increased to a five-month high of 5.7% in July, mostly as a result of strong performances by the manufacturing, mining, and power sectors.
After reaching a 15-month high of 7.44 percent in July, retail inflation dropped to 6.83 percent in August, primarily as a result of falling vegetable prices, but it is still above the Reserve Bank’s target range.
