Rupee opens 8 paise up at 75.34 against dollar

The rupee on Wednesday opened 8 paise higher at 75.34 against the US dollar tracking gains in the domestic equity market and weakness in the dollar index.

The local currency on Tuesday declined by 23 paise to settle at 75.42 against the dollar after inflation rose to 6.09 per cent in June compared to rise of 5.84 per cent in the month of March following increases for some food and fuel items. The government had not released the headline retail inflation data in April and May.

Yesterday, US equities rebounded sharply after Moderna said its coronavirus vaccine produced antibodies in all patients in an early trial, raising hope for a faster economic recovery.


The US-China relationship has grown increasingly tense recently over various issues, including China’s handling of the novel coronavirus and its tightened grip on Hong Kong.

“In the next couple of sessions we expect USDINR (Spot) could quote in the range of 75.05 and 75.50,” brokerage Motilal Oswal Financial Services said.

Dollar fell against its major crosses despite a rebound in US consumer prices in June after three straight monthly declines as businesses reopened. Consumer price index increased 0.6 per cent last month, the biggest gain since August 2012, after easing 0.1 per cent in May.

The increase, which ended three straight months of declines, was driven by rises in the prices of gasoline and food.

Today from the US, the focus will be on industrial production number. There are hopes that the number could surprise on the upside as the economy reopens.