Indian Rupee: Dollar Rebound Could Limit Gains

Published on Jan 16, 2024 09:10

The Indian rupee could come under pressure in opening trades on Tuesday after a streak of gains as dollar is seen rebounding overseas. The dollar index is holding up around half a percent today morning in Asia ahead of crucial data this week. Rupee strengthened for the ninth consecutive session near a four month high to settle with a gain of 6 paise to 82.89 against the US dollar on Monday. Benchmark indexes Sensex and Nifty both rose sharply past key milestones yesterday despite muted cues from global markets and deepening tensions in the Middle East. The benchmark S&P BSE Sensex jumped 759.49 points, or 1.05 percent, to 73.327.94 on optimism about strong domestic earnings and hopes for potential interest rate cuts by the U.S. Federal Reserve and the European Central Bank. The broader NSE Nifty index settled 202.90 points, or 0.93 percent, higher at 22,097.45. Meanwhile, data showed India`s trade deficit fell to three-month low of $19.8 billion in December 2023 as exports grew and imports eased, according to the commerce ministry. Separate data showed India`s wholesale inflation rose to 0.73 percent in December mainly due to a sharp rise in food prices.