India's rupee rebounded 15 piaise against US dollar on Wednesday

143
2
India's rupee rebounded 15 piaise against US dollar on Wednesday

The rupee on Wednesday rebounded by 15 piaise to close at 75.37 against the US dollar due a rally in overseas equities and weak American in domestic markets.

In addition, benign retail inflation in September also supported rupee sentiment, forex dealers said.

The rupee opened against the Greenback at the interbank forex market. During the session, the domestic unit swung between 75.19 and 75.51.

On Tuesday, the rupee closed against the dollar at 75.52.

Retail inflation fell to a five-month low of 4.35 per cent in September from 7.27 per cent in the year-ago period as prices of vegetables and other items decreased.

In September the Indian CPI climbed to a five-month low at 4.35 per cent, well within RBI's comfort zone of 2 - 6 per cent, giving RBI scope for sustainable economic recovery, Kaynat Chainwala - Fundamental Research Analyst Currencies, Anand Rathi said.

appreciated amid weakness in the dollar and rise in risk appetite in domestic markets. Further the rupee gained strength on IMCI Securities data, said Deepak Singh, a senior vice-chairmen of macroeconomics at ICICI Securities.

Sharp gains remained however, as investors remained vigilant ahead of the publication of FOMC meeting minutes and inflation data from the US. The rupee should trade in the range of 75.10 to 75.80 in the next couple of sessions, he added.

With investors keenly awaiting US retail sales, inflation and FOMC meeting minutes due this week, the dollar may trade range-bound between 94.2 and 94.6 and so the rupee is likely to swing back to 75.3 levels with a broader trading range in the coming sessions, he added.

After the US NFP, it is the CPI data and FOMC minutes that are in focus as it may offer more insight into when the Federal Reserve will reduce stimulus and raise interest rates. The USDINR - indicator has been somewhat volatile this week, rising to one-and-a-half years high, as event-specific risk has kept it afloat. In a note, Emkay Global Financial said that the note was a public service.

While the dollar index, which evaluates the strength of the greenback against a basket of six currencies, fell by 0.27 per cent to 94.26

Brent crude futures, the market oil benchmark, gained 0.40 per cent to USD 83.09 per barrel.

After scaling a record peak of 60,836. 63 During the session, the BSE Sensex settled 452.74 points or 0.75 per cent higher on 60,737. 05, taking its winning run to the fifth consecutive day.

The Nifty rallied 169.80 points or 0.94 per cent to 18,161. It has touched an intra-day record of 18,197. On Tuesday, foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs. 278.32 crore according to exchange data.