INR Stays Range Bound; Key US Inflation Awaited

Published on Jul 10, 2024 17:30

The Indian rupee stayed range-bound and settled 2 paise lower at 83.51 (provisional) against the US dollar on Wednesday amid rising crude oil prices overseas and selling in domestic equities. The benchmark S&P/BSE Sensex dropped 426.87 points, or 0.53 percent, to 79,924.77 while the broader NSE Nifty index closed at 24,324.45, down 108.75 points, or 0.45 percent from its previous close. A softening American currency and inflow of foreign funds capped the fall in the local unit. At the interbank foreign exchange market, the rupee opened flat at 83.49 against the dollar and moved in a close range of 83.48 to 83.53 during the session. The local unit finally settled at 83.51 (provisional) against the American currency, registering a loss of 2 paise from its previous close. The US dollar is staying cautious along the sidelines on Wednesday awaiting further clarity from US data due later this week that could throw some light on Federal course of action. US 10-year Treasury note yield steadied around 4.3% on Wednesday, finding some support after Federal Reserve Chair Jerome Powell reiterated the central bank�s cautious approach on interest rate cuts. Powell said the Fed needs more supporting data that inflation is moving sustainably toward 2% before reducing rates. However, he warned that maintaining restrictive policy for too long could unintentionally weaken economic activity and employment. Investors now look ahead to Powell�s appearance before the House on Wednesday, as well as key US inflation figures later this week for further clues on the monetary policy path.