In the early trade on Wednesday, the Indian rupee achieved 11 paise to 82.01 against the US dollar, which is 22.34 against the UAE dirham, and this showed a positive trend in the equities and foreign fund inflows.
Forex traders said that the investors are focusing on the CPI data of India, which is organised to be released later in the day.
The rupee flared at 82.08 against the dollar at the India interbank foreign exchange, then climbed to 82.01, reporting an increase of 11 paise on its preceding close.
On Tuesday, the rupee closed at 82.12 against the US currency. Meanwhile, the dollar index, which estimates the power of the greenback against a box of six currencies, decreased from 0.11 per cent to 102.08.
Brent crude is also the future, the global oil standard that advanced from 0.04% to $ 85.64 per barrel.
Amut Pabari, managing director of CR Forex Advisors, stated, ” The market will be focusing on the CPI data of India, which is anticipated to come at 5.80 per cent compared to the previous 6.44%.
He added that falling inflation would push the Reserve Bank of India to divert on the increase of the interest rate cycle, which could hurt the rupee in the future because of the narrowing interest rate differences between the US and India.
In the Indian equity market, the 30 shares of BSE Sensex advanced to 74.07 points or 0.12 per cent to 60, 231.79. The broader NSE Nifty achieved 37.45 points or 0.21% to 17,759.75.
According to the exchange data, Foreign Institutional Investors ( FIIs) were the net buyers in the capital market as they purchased shares worth Rs3.42 billion on Tuesday.
