Indian Rupee vs Dollar: Rupee strong again against dollar, business picks up on expectation of improvement in inflation
Indian Rupee vs Dollar Today: On the domestic equity market front, the 30-share BSE Sensex rose 99.08 points or 0.16 percent to close at 62724.71 points. The NSE Nifty closed at 18601.50, up 38.10 points or 0.21 percent.
![Indian Rupee vs Dollar: Rupee strong again against dollar, business picks up on expectation of improvement in inflation](https://www.sangritoday.com/uploads/images/2023/06/image_750x_648733f84c671.jpg)
The rupee on Monday appreciated by 4 paise to close at 82.43 (provisional) against the US dollar on easing crude oil prices and a positive trend in domestic equity markets. At the interbank forex market, the rupee opened at 82.45 against the dollar and closed at 82.43 (provisional), up 4 paise from its previous close.
During the day, the domestic unit clocked an intra-day high of 82.40 and a low of 82.48. On Friday, the rupee had closed at 82.47 against the American currency.
The rupee was trading on a flat to positive note on Monday driven by positive domestic markets and weakness in the US dollar. Weak crude oil prices also supported the domestic unit. However, FII outflows limited the sharp gains.
Foreign institutional investors (FIIs) were net sellers in the capital market on Friday, selling shares worth Rs 308.97 crore, according to exchange data.
The US dollar declined on growing expectations of a pause in rate hikes at the June FOMC meeting. This has also created a positive sentiment in the global markets. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.26 percent to 103.28. Meanwhile, global oil benchmark Brent crude futures fell 2.31 percent to USD 73.06 per barrel.
Rupee will trade marginally positively on risk-on sentiment in global markets and weakness in US Dollar. A sharp fall in crude oil prices may also support the domestic currency. Traders remained cautious ahead of the release of domestic Consumer Price Index (CPI) inflation and Index of Industrial Production (IIP) numbers.
The CPI is expected to decline in comparison to the previous month. IIP is expected to be better than before. The market is expected to trade cautiously ahead of the US inflation data and the outcome of the FOMC meeting later this week.