In early trade on Monday, the rupee gained 2 paise to 82.89 (Dh22.5) against the US dollar due to an infusion of foreign cash and declining crude oil prices in the international market. Forex traders claimed that the surging US dollar and muted sentiment in the equity market affected the value of the home currency.
As investors awaited inflation data from the US, Japan, and Europe to help temper expectations for future rate hikes, Asian markets stagnated close to seven-month highs on Monday.
The core personal consumption expenditures (PCE) price index, the preferred inflation gauge of the Federal Reserve, is expected to rise by 0.4% on Thursday. Investors were hoping for a mere 0.2% gain not too long ago, but current figures on producer and consumer prices indicate that there is a 0.5% chance of a higher outcome.
Markets have already moved the expected date of the first Fed easing from May to June, with a chance of about 70% being priced in. This year, futures suggest a little over three quarter-point reduction, as opposed to five at the beginning of the month.
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