INR DIPS LOWER AMID DOLLAR STRENGTH AHEAD OF PCE DATA; FIRM EQUITIES LIMIT DOWNSIDE

Published on Mar 28, 2024 17:26

The Indian rupee depreciated 6 paise to settle at 83.39 (provisional) against the US dollar on Thursday due to a strengthening greenback against major rivals overseas and rising crude oil prices in the international markets. The dollar index is staying put just above 104 mark on Thursday awaiting further cues from crucial data ahead. Investors are cautiously awaiting the upcoming US PCE price index report, a key inflation gauge for the Federal Reserve, which could impact monetary policy outlook. Fed Governor Christopher Waller said on Wednesday that the central bank could hold off on cutting interest rates amid strong inflation data. However, a firm trend in domestic equity markets and recent foreign fund inflows supported the domestic currency. At the interbank foreign exchange market, the local unit opened at 83.32 and oscillated between the intra-day peak of 83.30 and the lowest level of 83.40 against the greenback. The local unit finally settled at 83.39 (provisional), registering a loss of 6 paise from its previous close.