AGL 38.00 Decreased By ▼ -0.31 (-0.81%)
AIRLINK 136.69 Decreased By ▼ -4.71 (-3.33%)
BOP 5.42 Decreased By ▼ -0.22 (-3.9%)
CNERGY 3.83 Decreased By ▼ -0.04 (-1.03%)
DCL 7.59 Increased By ▲ 0.03 (0.4%)
DFML 46.05 Decreased By ▼ -1.35 (-2.85%)
DGKC 80.35 Increased By ▲ 0.60 (0.75%)
FCCL 28.03 Increased By ▲ 0.59 (2.15%)
FFBL 55.21 Increased By ▲ 0.36 (0.66%)
FFL 8.58 Decreased By ▼ -0.02 (-0.23%)
HUBC 112.65 Decreased By ▼ -0.86 (-0.76%)
HUMNL 12.33 Increased By ▲ 1.13 (10.09%)
KEL 3.85 Decreased By ▼ -0.14 (-3.51%)
KOSM 8.07 Decreased By ▼ -0.47 (-5.5%)
MLCF 35.11 Increased By ▲ 0.11 (0.31%)
NBP 66.00 Increased By ▲ 2.20 (3.45%)
OGDC 171.16 Increased By ▲ 1.76 (1.04%)
PAEL 25.18 No Change ▼ 0.00 (0%)
PIBTL 6.20 Increased By ▲ 0.31 (5.26%)
PPL 132.85 Increased By ▲ 7.10 (5.65%)
PRL 24.40 Decreased By ▼ -0.39 (-1.57%)
PTC 14.52 Increased By ▲ 1.26 (9.5%)
SEARL 58.95 Increased By ▲ 1.50 (2.61%)
TELE 7.09 Decreased By ▼ -0.03 (-0.42%)
TOMCL 35.00 No Change ▼ 0.00 (0%)
TPLP 8.09 Increased By ▲ 0.64 (8.59%)
TREET 14.30 Decreased By ▼ -0.02 (-0.14%)
TRG 45.59 Decreased By ▼ -0.95 (-2.04%)
UNITY 25.99 Decreased By ▼ -0.19 (-0.73%)
WTL 1.20 No Change ▼ 0.00 (0%)
BR100 9,084 Decreased By -6.9 (-0.08%)
BR30 27,631 Increased By 252.1 (0.92%)
KSE100 85,453 Decreased By -216.1 (-0.25%)
KSE30 27,149 Decreased By -67.3 (-0.25%)

MUMBAI: The Indian rupee rose on Wednesday tracking strength in most Asian currencies after a lower-than-expected U.S. inflation print cemented hopes the Federal Reserve will begin to cut interest rates from September.

The rupee was at 83.9025 against the U.S. dollar as of 10:50 a.m. IST, up nearly 0.1% from its close at 83.97 in the previous session.

The rupee has been lingering close to record lows over the last fortnight, and its gains are expected to be limited.

Importers have been quite actively bidding for dollars and there is an absence of large inflows, leading to only muted gains for the rupee, a foreign exchange trader at a private bank said.

The dollar index was at 102.64 after dropping nearly 0.5% on Tuesday after data showed that U.S. producer prices rose less than expected in July.

Asian currencies were mostly higher by 0.1% to 0.9%.

U.S. bond yields fell, with the 10-year declining to 3.84%, down 6 basis points from its close on Monday.

Indian rupee sees mild relief amid uptick in Asia peers

The rupee “is likely to underperform amid dollar weakness. We expect it to trade in an 83.80-83.95 range with sideways price action”, FX advisory firm IFA global said in a note.

The weak U.S. wholesale inflation print prompted investors to raise wagers on deeper rate cuts.

Investors are now pricing in 107 basis points of Fed rate cuts this, about 9 bps higher than before the U.S. inflation data.

The U.S. consumer inflation print will be in focus later in the day. A weaker-than-expected reading may further bolster hopes of aggressive rate cuts.

Dollar-rupee forward premiums rose, with the 1-year implied yield up 5 basis points at 2.09%, its highest since May 2023.

Comments

200 characters