Rupee gains 3 paise up at 74.82 against dollar

NEW DELHI: The rupee traded 3 paise higher at 74.82 against the US dollar in Friday’s early trade due to some selling in American currency by banks and exporters.

The local currency, however, opened flat at 74.84 against the greenback. Rupee traded in a narrow range on Thursday ahead of the important inflation number.

Data showed inflation rose for the fourth straight month in July as costs of some food articles and transportation remained high.


CPI stood at 6.93 per cent in July, compared to a revised estimate of 6.23 per cent in June 2020. With a rise in inflation the MPC is likely to pause in its October meeting.

At over 6 per cent, inflation continued to remain just above the MPC’s target for the fourth straight month since April.

For the day, brokerage Motilal Oswal Financial Services expects USDINR (Spot) to quote in the range of 74.40 and 75.10.

In the last few sessions, volatility in the dollar has been low against its major crosses following the impasse in Congress about additional US stimulus to help cope with the coronavirus pandemic.

Earlier this week, Trump accused congressional Democrats of not wanting to negotiate over a US coronavirus aid package as Republican and Democratic negotiators traded blame for a five-day lapse in talks over relief legislation.

Yesterday, weekly jobless claims number released from the US showed initial claims for state unemployment benefits decreased 2,28,000 to a seasonally adjusted 9,63,000 for the week ended August 8. Today, industrial production and consumer sentiment number will be important to watch and could provide a trigger to the greenback.