On Friday, crude prices hit new year-to-date highs, which impacted on the Indian rupee. Nevertheless, the downside was likely restrained by dollar selling orders and anticipated stock inflows.
At 11:00 IST, the rupee was trading at 83.07 against the US dollar, up from 83.03 the previous session. Most Asian currencies were in decline.
The rupee is unlikely to decline beyond 83.10–83.20, according to a foreign exchange trader at ForExim, who also warned that USD-INR may experience selling pressure at the current levels. ‘We may see a 20 paisa range today,’ the dealer added.
After better-than-anticipated economic statistics from China, Brent oil futures set a new year-to-date high on Friday at USD 94.63. In Asia, the dollar index declined after reaching a six-month high on Thursday.
The BSE Sensex and the Nifty 50, two Indian market indices, reached new highs on Friday. After a change to the FTSE index, traders anticipate stock inflows of approximately USD 500-550 million.
Analysts contend that the Reserve Bank of India should relax its control over the rupee in the meantime.
After the upcoming US Federal Reserve meeting, the RBI should permit the rupee to decline below 83.30. In October 2022, the rupee dropped to a record-low of 83.29.
On September 20, the Fed will reveal its stance on the economy. It is largely believed that the Fed will decide to maintain interest rates steady.