Tuesday saw little movement in the value of the Indian rupee as gains were restrained by UAE demand, despite the index being around its lowest point in almost five months.
As of 8.20 a.m. UAE time, the South Asian currency was trading at 83.1650 versus the US dollar (22.66 versus the UAE dirham), barely moving from its closing price of 83.14 (22.65) on Friday.
The majority of Asian currencies saw gains, rising from 0.2 to 0.5 percent. After worse than anticipated US inflation figures on Friday, the dollar index fell to its lowest level since late July, although it remained mostly stable at 101.6 during Asia’s business hours.
The currency is unlikely to experience significant increases even though “sentiments favour rupee bulls,” according to Dilip Parmar, a foreign exchange research analyst at HDFC Securities. Instead, it may trade between 83.05 and 83.25 (22.63–22.68) on Tuesday.
The preferred inflation indicator used by the US Federal Reserve, core personal consumption expenditure (PCE) inflation, increased by 0.1% month over month in November, below the 0.2% predicted by Reuters’ panel of experts.
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