The Indian rupee opened marginally higher against the US dollar tracking gains in local equities and Asian currencies markets.
At 9.20am, the domestic currency was trading at 82.04 a dollar, up 0.07 percent from its previous close of 82.10.
The local equity markets hit the 67,000 mark on Wednesday, July 19. Since March till date, the benchmark Sensex rose over 15 percent.
The market is eagerly awaiting the FOMC meeting on July 26, during which the Federal Reserve (FED) is expected to raise rates by 25 basis points (bps). However, the market is particularly interested in the tone of the meeting as it could have significant implications. On the following day, the European Central Bank (ECB) will announce its rate decision on July 27.
According to CR Forex note, the rupee is likely to remain flat to stronger hovering near the 82 +/- 10 paisa levels. The rising oil prices led by expectations of more stimulus spending by China to support their economy could also keep the rupee rise in check. Also, post the supply cut announced by Saudi and OPEC+, the average Indian crude basket continued to rise for June and July standing at $78.22 per barrel, compared to $74.93 a barrel in June.
Asian currencies were trading higher. China Offshore gained 0.95 percent, Thai Baht 0.6 percent, Japanese yen 0.38 percent, Singapore dollar 0.25 percent, Philippines peso 0.22 percent, Taiwan dollar 0.11 percent, South Korean won 0.11 percent. Meanwhile, the Malaysian ringgit fell 0.19 percent.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 100.075, down 0.20 percent from its previous close of 100.28.
(with Bloomberg inputs)
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