On Friday, the trading session started with the rupee showing a weakening opening at 82.75 against the US dollar with depreciation of 4 paise. This small decline occurred as the US dollar stabilized globally.
Recent data indicated an increase in US consumer prices in July, which has led to optimism that the Federal Reserve may pause further interest rate hikes for now. As a result, the dollar index, which measures the strength of the US dollar against currencies, experienced a marginal dip of 0.078% and currently stands at 102.54. However, it is expected to register gains for the week.
In the days trading, the rupee closed stronger at 82.71 against the dollar. This improvement was attributed to the Reserve Bank of India’s decision to maintain its interest rates.
Analysts are predicting that there could be an appreciation in the value of the rupee due to expected corrections in the value of dollars and easing crude oil prices. A report highlighted that there is growing sentiment that considering price pressure and a relaxed job market in the US, there might be a break from further rate hikes by Federal Reserve in upcoming meetings. This sentiment could support a position for the rupee with expectations that USDINR might face resistance around 82.85 and potentially retract towards the 82.50 level.
The price of Brent crude futures in the oil market increased slightly by 0.02%, reaching $86.42 per barrel whereas the US West Texas Intermediate crude futures rose by 0.04% to $82.85.