USDINR Keeps Caution Ahead OF US CPI; Dollar Off 102 Mark

Published on Aug 10, 2023 17:08

USDINR futures on the NSE traded below the red line all through the day and slumped further by the end of the trading session. The pair commenced the day at around 82.90 levels and hit intraday lows of 82.70. The decline comes on the back of dollar holding lower in international markets ahead of crucial CPI data later today. The dollar index that measures the greenback against a basket of currencies is trading at 101.97, down 0.35% on the day. However, sharply negative equities amid risk aversion ahead of US data limited gains in the Indian currency. The benchmark S&P BSE Sensex fell 307.63 points, or 0.47 percent, to 65,688.18 while the broader NSE Nifty index settled 89.45 points, or 0.46 percent, higher at 19,543.10. Earlier in the day, the Reserve Bank of India (RBI) monetary policy committee decided to keep the repo rate unchanged at 6.5%. Since May 2022, the central bank has raised the repo rate by 250 basis points (bps). The MPC also raised inflation expectations to 5.4% for FY24. In the spot market, rupee gained 20 paise to close at 82.66 (provisional) against the US dollar on Thursday.