AIRLINK 170.00 Decreased By ▼ -0.57 (-0.33%)
BOP 11.55 Increased By ▲ 0.37 (3.31%)
CNERGY 8.54 Increased By ▲ 0.13 (1.55%)
CPHL 99.89 Increased By ▲ 0.16 (0.16%)
FCCL 46.30 Decreased By ▼ -0.30 (-0.64%)
FFL 15.43 Increased By ▲ 0.28 (1.85%)
FLYNG 28.00 Increased By ▲ 0.45 (1.63%)
HUBC 142.95 Increased By ▲ 5.17 (3.75%)
HUMNL 12.92 No Change ▼ 0.00 (0%)
KEL 4.55 Increased By ▲ 0.01 (0.22%)
KOSM 5.30 Decreased By ▼ -0.06 (-1.12%)
MLCF 62.63 Increased By ▲ 0.23 (0.37%)
OGDC 212.00 Decreased By ▼ -0.16 (-0.08%)
PACE 5.39 Decreased By ▼ -0.03 (-0.55%)
PAEL 46.60 Decreased By ▼ -0.58 (-1.23%)
PIAHCLA 18.18 Decreased By ▼ -0.30 (-1.62%)
PIBTL 10.90 Increased By ▲ 0.54 (5.21%)
POWER 12.17 Decreased By ▼ -0.16 (-1.3%)
PPL 171.49 Increased By ▲ 1.89 (1.11%)
PRL 35.96 Increased By ▲ 0.11 (0.31%)
PTC 23.10 Increased By ▲ 0.01 (0.04%)
SEARL 96.84 Increased By ▲ 0.58 (0.6%)
SSGC 41.25 Increased By ▲ 1.73 (4.38%)
SYM 13.95 Increased By ▲ 0.11 (0.79%)
TELE 7.15 No Change ▼ 0.00 (0%)
TPLP 10.00 Decreased By ▼ -0.03 (-0.3%)
TRG 63.49 Increased By ▲ 0.01 (0.02%)
WAVESAPP 10.03 Increased By ▲ 0.04 (0.4%)
WTL 1.31 No Change ▼ 0.00 (0%)
YOUW 3.67 Increased By ▲ 0.01 (0.27%)
BR100 12,406 Increased By 100.9 (0.82%)
BR30 37,762 Increased By 346.9 (0.93%)
KSE100 115,865 Increased By 1011.9 (0.88%)
KSE30 35,532 Increased By 314.8 (0.89%)

MUMBAI: The Indian rupee was largely flat in early trading on Tuesday as mild dollar sales from state-run banks supported the currency even as most of its Asian peers slipped.

The rupee was at 83.4775 against the US dollar as of 10:10 a.m. IST, barely changed from its previous close at 83.4925.

Most Asian currencies edged lower ahead of Federal Reserve Chair Jerome Powell’s closely watched two-day testimony before Congress starting later in the day.

The dollar index was at 105 after rising 0.1% on Monday.

Indian rupee closes flat

Powell’s remarks will follow a string of relatively soft US economic data which has helped push up the odds of a September rate cut by the Fed to above 75%, according to the CME’s FedWatch tool.

“If Powell hints that the Fed is closer to an interest rate cut in September, it could send the (dollar index) below 104.75, a critical support level,” DBS Bank said in a Tuesday note.

However, traders do not expect Powell’s remarks to have a notable impact on the rupee.

It is “tricky to say” which cue may move the currency out of the prevailing 83.40-83.60 band, with the Reserve Bank of India expected to limit depreciation, while corporate dollar demand caps gains, a foreign exchange trader at a state-run bank said.

Inflows worth about $2.1 billion into Indian debt and equities over July so far, according to stock depository data, have also supported the rupee.

Mostly range-bound price action though has squeezed volatility expectations on the dollar-rupee pair with the 1-month implied volatility dropping to 1.75%, its lowest since March.

Alongside Powell’s testimony, remarks from other Fed speakers will also be in focus heading into the US consumer inflation print on Thursday.

Comments

Comments are closed.