Rupee Stays Sedated As US Inflation Stays Unchanged And Indian Inflation Turns Lower

Published on Oct 13, 2023 12:28

The Indian Rupee is struggling against the US dollar today as a renewed spike in the dollar following accelerated US inflation is keeping a tab on the INR. Rupee fell in volatile trades yesterday, coming off intraday highs and is witnessing a tepid action today. The US dollar index saw a good spike as Labor Department released a report on Thursday showing consumer price growth in the US also slightly exceeded estimates in the month of September. The Labor Department said its consumer price index climbed by 0.4% in September after increasing by 0.6% in August. The report also said the annual rate of consumer price growth was unchanged at 3.7%. This pulled the 10 year US treasury yield towards 4.70% mark- yet again approaching towards a near 16 year top. The US dollar index also spiked above 106 mark. A moderation in India`s consumer price inflation also capped the INR. The consumer price index posted an annual increase of 5.02 percent in September, slower than the 6.83% increase in August. Inflation has come back to the central bank`s tolerance band of 2-6 percent for the first time in three months. On Thursday, rupee snapped its two day winning streak and settled 6 paise lower at 83.24 against the US dollar. The INR currently quotes down slightly at 83.25 per US dollar.