Indian Rupee up after soft U.S Infaltion data
The Fed paused its two-year rate tightening campaign driving the Indian Rupee high
MUMBAI: The Indian rupee was higher on Thursday on the dollar's weakness against major currencies as
soft U.S. consumer price data lead to speculation the Federal Reserve could keep rates on hold next month.
soft U.S. consumer price data lead to speculation the Federal Reserve could keep rates on hold next month.
The Fed paused its two-year rate tightening campaign by keeping rates steady last week, after 17 consecutive rate
increases. India's central bank has said global factors increasingly weighed more on shaping its monetary policy.
increases. India's central bank has said global factors increasingly weighed more on shaping its monetary policy.
"Today there could be supplies (of dollars) but if oil companies are there those supplies could be easily absorbed," a
dealer with a private sector bank said, adding that the rupee could trade in a 46.45 to 46.55 range.
dealer with a private sector bank said, adding that the rupee could trade in a 46.45 to 46.55 range.
Although crude prices are below $72 a barrel, oil companies could buy dollars if the rupee strengthens further, he said.
Oil prices fell for a fourth day on Thursday to their lowest level in eight weeks on relatively robust crude
stocks. India imports about 70 percent of its oil and lower crude prices could mean lesser demand for dollars to buy oil.
stocks. India imports about 70 percent of its oil and lower crude prices could mean lesser demand for dollars to buy oil.
Indian shares opened higher at the start of trade, after posting gains for six straight sessions, and that could mean
some foreign fund inflows and more support for the rupee.
some foreign fund inflows and more support for the rupee.
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