Now Reading: Rupee closes flat at 95.33 against US dollar
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Rupee closes flat at 95.33 against US dollar
The rupee settled just 3 paise higher at 95.33 (provisional) against the US dollar on Wednesday, as hopes of a quick US-Iran agreement and reopening of the Strait of Hormuz faded. Forex…
The Story in Brief
The rupee settled just 3 paise higher at 95.33 (provisional) against the US dollar on Wednesday, as hopes of a quick US-Iran agreement and reopening of the Strait of Hormuz faded. Forex traders said Brent crude was moving towards $90 per barrel amid risk aversion in global markets.
At the interbank foreign exchange market, the rupee opened at 95.40 and traded in a range of 95.24-95.43 before closing at 95.33. The dollar index was trading at 99.85, up 0.03%. According to CR Forex Advisors MD Amit Pabari, the US CPI print is a key factor for the rupee, with a hotter reading expected to strengthen the dollar and pressure the rupee.
The Indian Opinion
The rupee is bumping along at 95 while the nation waits for the US CPI data. The narrative that India is somehow decoupled from global oil shocks or safe from a strong dollar is lazy, Fitch itself flagged fiscal pressure from youth protests even as it kept the rating at BBB-. The real test is not the rupee's daily 3-paise move but the US inflation number. A hotter print will force the RBI to tighten or let the rupee slide. Which will it choose?
Source: thehindu.com
This story was synthesised by AI from the source linked above.
