The Indian rupee started the trading day on a note against the US dollar as investors prepared themselves for economic events, such as key US inflation data and the European Central Banks (ECB) monetary policy meeting scheduled for September 13. At 9:10 a.m., the Indian currency stood at 82.93 against the dollar, showing an increase of 0.01 percent compared to its close of 82.92. Initially, the rupee opened at 82.92.
Recent economic reports revealed that India’s Consumer Price Index (CPI) stood at 6.83% while the Index of Industrial Production (IIP) witnessed a growth rate of 5.7%, both surpassing market expectations. As global financial markets await the release of US CPI data today, analysts are eager to assess its impact on the Federal Reserve’s strategy to combat inflation. It is worth noting that the US dollar index remains relatively stable, hovering close to six-month highs, and US 10-year bond yields continue to remain above the threshold of 4.25% in anticipation of the ECB monetary policy meeting.
According to reports, once it surpasses the level of 82.80, it is believed that the rupee will target a level of around 82.50 with support from inflows and proactive measures taken by Indian Reserve Bank (RBI). On the other hand, it is anticipated that the 83.25 level will pose a challenge, as resistance.
In currency markets, a number of currencies experienced some weakness. The Thai Baht saw a decline of 0.29%, the Japanese yen lost 0.2%, the Indonesian rupiah dropped by 0.16%, while both the Korean won and the Singapore dollar fell by 0.11%.