Rupee Fails To Sustain Gains As Nifty Nears One Week Low

Published on Aug 11, 2023 12:16

The Indian Rupee slipped against the US dollar today after witnessing a good recovery in last session as firm US dollar capped the advances in the local currency. A sustained drop in local equities also weighed on the INR. The Rupee good gains yesterday after recent spate of weakness but failed to hold onto them after the US dollar index stayed well above the 102 mark following the US CPI data. The annual US consumer price inflation increased to 3.2% in July 2023, up from 3% in June, marking the end of a 12-month streak of reductions due to base effects. The CPI increased 0.2% over the previous month, matching the gain reported in June. Meanwhile, 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. The INR is currently quoting at 82.77, down 11 paise per US dollar on the day. The benchmark NIFTY50 stock index has neared a one week low of 19430 in first couple of hours of trade, keeping a tab on the INR.