Rupee ends weaker, pressured by state-run banks' dollar bids; eye on US inflation

Jaspreet Kalra
Updated ·2-min read
FILE PHOTO: Indian twenty rupee currency notes are displayed at a roadside currency exchange stall in New Delhi

By Jaspreet Kalra

MUMBAI (Reuters) - The Indian rupee ended slightly weaker on Thursday, pressured by dollar demand from state-run banks and importers, although most of its Asian peers gained ahead of a key U.S. inflation report.

The rupee ended at 83.56 against the U.S. dollar, moderately lower than its close at 83.52 in the previous session.

While the local unit shuffled in a tight band in the first half of the session, bids from state-run banks pushed it lower towards the latter half, a foreign exchange trader at a private bank said.

"Expecting a decent-sized downmove (on USD/INR) post the U.S. CPI (consumer price index) data," the trader added.

The inflation report for June, due later on Thursday, follows a string of soft U.S. economic data that has helped push up the odds of a September rate cut by the Federal Reserve to more than 73%, according to CME's FedWatch tool.

Economists polled by Reuters forecast month-on-month core U.S. CPI holding steady at 0.2% in June.

Despite mostly soft economic data, Fed officials have urged caution on the future path of rate cuts.

Fed Chair Jerome Powell said on Wednesday that he was not ready to conclude that inflation is moving sustainably down to the central bank's 2% target, though he has "some confidence of that."

The dollar index was down 0.1% at 104.8 on Thursday while most Asian currencies rose on the day, with the Korean won up 0.4% and leading gains.

Investors will also keep an eye on U.S. jobless claims data and remarks from Fed officials slated to speak later in the day.

Weakness in the rupee may extend to 83.70 on a negative surprise on U.S. CPI, Abhilash Koikkara, head of forex and rates at Nuvama Professional Clients Group, said.

On the other hand, strength in the rupee should remain capped near 83.20-83.30, Koikkara added.

(Reporting by Jaspreet Kalra; Editing by Sonia Cheema)

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • 3 High Yield Dividend Stocks On SGX With Yields Up To 6.2%

    In recent developments, the European Central Bank highlighted the need for enhanced cyber resilience within the banking sector, reflecting broader concerns about stability and security in financial markets. As investors navigate these complex landscapes, high-yield dividend stocks on the SGX offer a compelling avenue for those seeking potential stability and steady returns amidst market uncertainties.

  • Keppel DC REIT’s 1H 2024 DPU Tumbles Nearly 10% Year on Year: Should Income Investors Be Concerned?

    The data centre REIT still sees robust fundamentals within the sector that can act as long-term tailwinds. The post Keppel DC REIT’s 1H 2024 DPU Tumbles Nearly 10% Year on Year: Should Income Investors Be Concerned? appeared first on The Smart Investor.

  • Seatrium expects net profit for 1HFY2024 in profit guidance

    Further details will be disclosed in its financial results to be released on Aug 2.

  • Exploring Value On SGX Three Stocks Estimated To Be Up To 43% Below Intrinsic Value

    Amidst a global landscape where cyber resilience is becoming increasingly critical, the Singapore market presents unique opportunities for investors seeking value. As we explore undervalued stocks on the SGX, it's essential to consider companies with robust operational frameworks that can withstand not just market fluctuations but also external threats like cyber disruptions, enhancing their long-term investment appeal.

  • How the big bet on electric car gigafactories went badly wrong

    The future will be battery-powered, we are told. Silent electric cars will replace their gas-guzzling predecessors. Energy storage packs will power houses and offices, filled with the electricity generated by wind and solar. Eventually electric ships and aeroplanes will help eliminate emissions altogether. The electrified economy will need terawatts of storage.

  • Institutional owners may ignore NVIDIA Corporation's (NASDAQ:NVDA) recent US$258b market cap decline as longer-term profits stay in the green

    Key Insights Significantly high institutional ownership implies NVIDIA's stock price is sensitive to their trading...

  • WSJ money guru, 61, preached saving enough to retire past 90 — then he got a devastating cancer diagnosis

    Jonathan Clements followed his own advice.

  • Stocks rally peters out as focus turns to interest rates

    A stock market rally lost its legs Monday as investors looked ahead to key interest-rate decisions this week in the United States and elsewhere."The rebound in risk assets seen at the end of last week has, unsurprisingly, stalled, as investors prepare for an action-packed few days," said Chris Beauchamp, chief market analyst at online trading platform IG. "Wall Street has rallied off its lows of the past week, but few traders will be willing to sound the all clear yet," he added.

  • Microsoft's costs in focus as fears rise over slow payoff from AI

    Microsoft investors will have one big question when the tech giant reports earnings on Tuesday: has growth in its Azure cloud-computing business picked up enough to justify the billions of dollars being spent on artificial intelligence infrastructure? Widely seen as the front-runner in the race to make money from AI, thanks to its tie-up with ChatGPT maker OpenAI, Microsoft is expected to report that Azure's growth stayed steady quarter-over-quarter at about 31% between April and June, according to data from Visible Alpha. Microsoft's capital spending likely surged about 53% year-over-year to $13.64 billion in the period, according to 16 analysts polled by LSEG.

  • Stock market news today: S&P 500, Nasdaq inch higher to kick off huge week for markets

    Investors are bracing for a big week filled with a Fed rate decision, the jobs report and Big Tech earnings.

  • Taiwan Unveils $100B Economic Reform Plan After Trump Said It Should 'Pay Us For Defense:' Will Fuel Nvidia, TSMC And Apple iPhone Assembler's AI Plans

    Taiwan’s Premier Cho Jung-tai has announced a sweeping economic and social reform plan, aiming to attract nearly $100 billion in investments. This comes after former President Donald Trump said “Taiwan should pay us for defense.” What Happened: The reform plan would focus on energy, artificial intelligence, and infrastructure. The strategy includes appealing to Taiwanese investors disillusioned with conducting business in China, a trend the government aims to capitalize on, said Premier Cho in a

  • Tesla stock is a new top pick at Morgan Stanley

    Morgan Stanley has elevated Tesla (NASDAQ:TSLA) to its "Top Pick" in the US autos sector, replacing Ford (NYSE:F). Analysts project a 40% upside, aiming for a $310 target price, underpinned by several factors driving firm value and more managed expectations on autos.

  • Dollar trades sideways as markets wait for central bank, economic news

    NEW YORK/LONDON/TOKYO (Reuters) -The dollar held steady on Monday as traders braced for an avalanche of market events featuring midweek policy decisions by the Federal Reserve, Bank of Japan and Bank of England, and what could be a pivotal U.S. employment report for the Fed on Friday. The yen was little changed following the Japanese currency's strongest weekly rally since late April on the back of shifting interest rate expectations and a stock market sell-off. The dollar index, which measures the currency against the euro, yen and four other major currencies, rose 0.18% to 104.56.

  • Fed likely to hold rates steady one last time as inflation fight finale unfolds

    The Federal Reserve is expected to hold interest rates steady at a two-day policy meeting this week but open the door to interest rate cuts as soon as September by acknowledging inflation has edged nearer to the U.S. central bank's 2% target. Policymakers in advance of the July 30-31 meeting were reluctant to commit to the timing of a first rate cut, but audibly cheered recent data showing price pressures were easing broadly, with headline inflation moving closer to the Fed's target and evidence from job, housing and other markets suggesting that trend would continue. Data on Friday showed the Fed's preferred personal consumption expenditures price index, which was accelerating by as much as 7.1% on a year-over-year basis in 2022, rose by 2.5% in June after a 2.6% gain in May. Since March, in fact, the annualized month-to-month changes in the PCE price index show it rising at just 1.5% - half a percentage point below the Fed's target.

  • Alibaba rises on report it will charge software service fee

    Shares of Chinese e-commerce giant Alibaba Group (BABA) are rising in early trading on Monday following a Bloomberg report that it will be charging some merchants a new software service. The new fee will apply to transaction son the Tmall and Taobao platforms. Morning Brief anchors Brad Smith and Brian Sozzi discuss the report in the video above. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Stephanie Mikulich.

  • 'Oil’s Bermuda triangle is nearing an end': Get ready for a breakout- BofA

    Investing.com -- Bank of America (BofA), in a note dated July 28, has issued a stark warning that the oil market is on the precipice of a dramatic breakout. After over a year of trading within a tight range – a pattern technically known as a triangle – analysts believe the market is poised for a sharp and sudden move.

  • Profits fall at McDonald's as it redoubles value push

    Fast food giant McDonald's vowed Monday to win back consumers with better value offerings after it reported a rare sales decline that the company partly attributed to an exodus of inflation-weary low-income consumers.The summer offering is a pitch to inflation-weary consumers to "help your dollar go further," said a June 20 company announcement.

  • Surging yen upends popular global FX carry trades

    LONDON/SINGAPORE (Reuters) -A perfect storm of political, policy and technical risks has upended one of the year's most popular currency trades, sending the Japanese yen soaring from 38-year lows with ripples spreading as far as Switzerland, Australia and Mexico. Nearly $40 billion in suspected intervention by Japanese authorities ignited the yen's rally but the move has taken on a life of its own, upending the carry trades which exploit differences in interest rates and often utilise the currency. The yen has surged from around 162 per dollar in mid July to roughly 153 per dollar, its biggest two week gain of the year, even if it remains this 2024's worst performing G10 currency.

  • S&P 500 barely rises as investors await key results, jobs data, Fed meeting

    (Reuters) -The S&P 500 closed barely higher after Monday's choppy trading session as investors held their breath ahead of a raft of big technology company earnings, a Federal Reserve policy decision on interest-rate cuts and key US labor data, all due this week. Quarterly reports from market heavyweights such as Microsoft and Apple, Meta and Amazon.com this week will offer clues on whether technology stocks are vulnerable or can extend their recent rallies. Investors are hoping that the Fed will end its meeting on Wednesday with a signal that it is preparing for a September rate cut in its policy verdict.

  • SGX Dividend Stocks To Watch In July 2024

    As of July 2024, the Singapore market continues to attract attention with its stable performance amidst global economic fluctuations. This resilience makes it an appealing arena for investors looking for reliable dividend stocks. In the current climate, a good dividend stock not only offers attractive yield but also demonstrates strong fundamentals and consistent performance, aligning well with the ongoing stability in Singapore's market conditions.