Early trading saw the rupee rise 5 paise and reach 83.54 against the US dollar.
Forex dealers have observed that the rupee is trading in a narrow range as attention is focused on the US Consumer Price Index (CPI) for May and the Fed rate decision.
Mumbai: Encouraged by optimism in the local equities market, the rupee gained 5 paise to 83.54 against the US dollar in early trade on Wednesday.
Forex traders reported that the rupee is trading in a limited range since all eyes are focused on the US Consumer Price Index (CPI) for May, the Fed rate decision, and domestically on India's Consumer Price Index (CPI).
In addition, the strength of the US dollar in foreign exchange markets and rising crude oil prices put pressure on the local currency and limited the advance.
The local unit opened at 83.56 on the interbank foreign exchange market and advanced to trade at 83.54 versus the US dollar in the first trades. This represents a 5 paise increase from its previous closing level.
Tuesday saw the rupee end the day at 83.59 against the US dollar, down 9 paise from its opening value.
Amit Pabari, MD of CR Forex Advisors, stated, "The Indian rupee has remained steady despite a strengthening US Dollar driven by rising US bond yields and diminished expectations of Fed rate cuts following robust US employment figures."
Pabari added that declining budget deficits, faster growth, and
What's Your Reaction?
