Rupee opens higher, may appreciate more on weak dollar, lower crude oil prices; USDINR to trade in this range

The rupee gained 13 paise to 82.57 against the US dollar in early trade on Tuesday as the American currency retreated from its elevated levels.

RupeeVsDollar, DollarVsRupee, currency, US dollar
At the interbank foreign exchange, rupee opened at 82.59 against the dollar, then gained ground and touched 82.57, registering a rise of 13 paise over its previous close.

Rupee opened higher at 82.58, up 13 paise from its previous at 82.72 per dollar on Tuesday amid steadiness in value of greenback against a basket of six peers. Global crude oil benchmarks fell on Tuesday supporting the currency. The local unit is expected to appreciate today amid weakness in the dollar and optimistic global market sentiments. Moreover, investors will closely watch CPI data from the US, which is expected to show annual inflation in the US declined from 6.5% to 6.2%. Meanwhile, sharp gains may be prevented as India’s inflation accelerated more than expected in January and moved above RBI comfort zone. “The US$INR is likely to drop towards the level of 82.50,” said ICICIdirect.

Market participants cautious

“Market participants remain cautious ahead of the US inflation number that will be released today. Expectation is that inflation could receed in January and could lead to some retracement in the dollar against its major crosses. We expect the USDINR(Spot) to trade sideways and quote in the range of 82.40 and 82.90,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

USDINR pair may consolidate in thin range

“After a series of outflows, yesterday the FII turned buyers in the Indian equity, though minimal buying was seen. With no major event schedule, the focus remains on the US CPI for the global and domestic markets to have directional cues. Meanwhile, the USDINR pair is likely to consolidate in a thin range of 82.40-82.80 levels, said Amit Pabari, MD, CR Forex Advisors.

“We expect Rupee to trade with a negative bias amid risk aversion in global markets and rising US Dollar. Sustained outflows by foreign investors may also mount downside pressure on the domestic currency. Traders may remain cautious ahead of inflation data US tomorrow today. USDINR spot price is expected to trade in a range of Rs 82.20 to Rs 83.30,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

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First published on: 14-02-2023 at 10:19 IST
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