The Indian rupee reached a six-month peak on Monday, driven by inflows and a surge in other Asian currencies. Reaching 82.65 against the US dollar, its highest since early September, the rupee stood at 82.6725 at 12:24 p.m. IST, up from the previous day’s close of 82.7850. Traders noted substantial interest in selling dollar/rupee at the daily reference rate, which traded at a discount, indicating a willingness among dollar sellers to accept a rate lower than the fix rate.
Asian peers’ strength, coupled with a decline in US Treasury yields, contributed to the rupee’s rise. The Korean won saw a 0.8% climb, and the Indonesian rupiah advanced by 0.4%. The US jobs report released on Friday was a mixed bag, with February job additions surpassing expectations, but January payrolls experiencing a significant downward revision. The unemployment rate reached a two-year high, and wage growth was softer than anticipated.
Attention now turns to the upcoming US February inflation data, scheduled for Tuesday, following the higher-than-expected January inflation print. The market keenly awaits insights into inflation trends, crucial for shaping future economic policies.
The rupee’s robust performance reflects investor confidence, driven by favorable economic factors, resilient Asian markets, and anticipation of the US inflation report. As global economic indicators continue to influence currency markets, traders closely monitor developments, seeking clues to navigate potential currency shifts.
In this dynamic environment, the rupee’s resilience underscores its strength against external uncertainties, providing a positive outlook for investors and traders alike. As the focus remains on economic data releases and global market dynamics, the rupee’s trajectory will likely be influenced by the evolving economic landscape.
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