In line with declines in Asian currencies and local markets, the Indian rupee dipped slightly versus the US dollar. The local currency was down 0.03 percent from its previous close of 82.72 in the morning session it was trading at 82.74 to the dollar.
With the benchmark Sensex and Nifty falling 10 out of 15 sessions, the local equities markets are consolidating. It lost almost 0.5 percent on Thursday as a result of RBI policy.
The 82.80–82.90 levels present significant resistance to the rupee. The markets have already discounted all risk concerns, thus we anticipate that in the next few days, the rupee will strengthen due to improving fundamentals and FII/FDI inflows. Higher spot levels are an opportunity for exporters to hedge their exposure. On the other side, importers would experience a decline in the upcoming days towards 82.20-82.00 levels, according to CR Forex.
The annual headline inflation rate increased to 3.2% from 3% in the US statistics overnight, which was somewhat less than the expected 3.3%. Furthermore, the Core Consumer Price Index (CPI) came in at 4.7%, just shy of the forecasted 4.8%.
The value of Asian currencies was declining. The value of the Indonesian rupiah fell by 0.26 percent, the Taiwan dollar by 0.22 percent, the Malaysian ringgit by 0.2 percent, the China renminbi by 0.14 percent, and the South Korean won by 0.48 percent.
The dollar index, which gauges the strength of the US dollar versus other major currencies, was up 0.03% from its previous closing of 102.524 to 102.554.
