A customer counts money before paying a vegetable vendor at a market in Mumbai, India, June 4, 2015. REUTERS/Shailesh Andrade/File Photo Acquire Licensing Rights
MUMBAI, Sept 13 (Reuters) – The Indian rupee was little changed on Wednesday with traders adjusting positions ahead of U.S. inflation data, which will play a key role in the Federal Reserve’s decision on whether more rate hikes are needed.
The rupee was at 82.9275 against the U.S. dollar as of 11:14 a.m. IST, compared with the previous session’s close of 82.9225.
Asian currencies, except for the onshore Chinese yuan, were mostly lower, while the dollar index inched up to 104.64.
With US inflation data due, the market might trim its positions (on USD/INR), more so on the long side, a trader at a foreign bank said.
He touted 82.80 a major resistance for the rupee and said strength beyond that could trigger further appreciation to 82.50.
Rising crude oil prices suggest that rallies on rupee may be difficult to come by, according to traders. Brent crude futures hit a fresh 10-month high of $92.40 per barrel overnight on supply concerns.
“The inability (of USD/INR) to push much above 83 underscores the weak buying interest,” said Anand James, chief market strategist at Geojit Financial Services, before adding that the outlook on the USD/INR will stay positive only while its above 82.78.
U.S. numbers are expected to show that core consumer price index (CPI) inflation rose by 0.2% month-on-month in August, according to a Reuters poll.
Core CPI is a metric closely watched by the Fed and any surprises to the upside could raise chances of further Fed tightening.
Currently, futures indicate low odds of a rate hike at this month’s meeting and an about 40% probability of one in November.
Reporting by Jaspreet Kalra; Editing by Janane Venkatraman
Our Standards: The Thomson Reuters Trust Principles.
Credit: Source link
