India’s rupee supported by lower US inflation
The Indian rupee is expected to see mixed forces on Thursday, with some support from cooling US inflation but potential pressure from the Federal Reserve’s revised rate cut projections.
The surprise decline in US consumer prices for May (unchanged compared to a 0.1 per cent increase forecast) could offer some support to the rupee.
The rupee is expected to open at 83.52-83.55 per US dollar, slightly weaker than its previous close.
The Fed’s projection of just one rate cut this year, compared to previous expectations of three, has led to a potential strengthening of the dollar.
Key figures:
- One-month non-deliverable rupee forward: 83.60
- Onshore one-month forward premium: 7 paise
- Dollar index: 104.76
- Brent crude futures: down 0.4 per cent at $82.3 per barrel
- Ten-year US note yield: 4.32 per cent
- Foreign investors bought a net $6.8 million worth of Indian shares on June 11
- Foreign investors sold a net $299.2 million worth of Indian bonds on June 11
Attribution: Reuters
