“The Indian rupee is trading flat. It opened on a positive note on weak Dollar and positive domestic markets. However, it lost its initial gains on some FII outflows and a slight recovery in crude oil prices. The US dollar declined on Wednesday as traders trimmed their positions ahead of inflation data,” Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.
Investors are awaiting US inflation data to be released later in the day for further cues, forex analysts said, adding that traders will also closely monitor the domestic inflation numbers to be released on Friday.
“We expect the rupee to trade with a slight positive bias on the soft US Dollar and positive Asian currencies. However, recent FII outflows and recovery in crude oil prices may cap sharp gains.
“Concerns over global economic slowdown and the ongoing geopolitical tensions in the Red Sea and Middle East may also weigh on Rupee. Investors may remain cautious ahead of inflation data US and CPI and IIP data from and India on Friday. USDINR spot price is expected to trade in a range of Rs 82.70 to Rs 83.30,” Choudhary said.
The domestic currency had gained 10 paise on Wednesday. The rupee has witnessed a cumulative gain of 29 paise in the previous six sessions since the level of 83.32 versus dollar recorded on January 2.
