Rupee trades flat against US dollar ahead of India's CPI data

Rupee

The Indian rupee opened little changed on June 12 against the US dollar in a thinly traded market, as traders awaited key CPI data and US Fed policy.

At 9.05 am, the home currency was trading at 82.45 a dollar, up 0.01 percent from its previous close of 82.47. The currency opened at 82.46 a dollar.

Traders are awaiting India consumer price inflation data due after 5.30 pm on June 12. India's retail inflation probably slowed to 4.32 percent in May from 4.7 percent a month earlier, according to a Bloomberg survey.

Traders are also awaiting a US fed policy meeting and US CPI data. After a surprise hike by the central banks of Australia and Canada last week, it would be difficult for the Fed to turn dovish and talk about cuts, analysts said.

"The market expects at least one hike in either the June or July meeting. A hawkish tone could give a boost to the US DXY to move towards 104.50-105 levels. Post Fed, ECB on Thursday and BoJ on Friday are lined up to deliver their decision on the monetary policy," said Amit Pabari CR Forex.

Among Asian currencies, the Thai Baht was down 0.31 percent, the Indonesian rupiah fell 0.3 percent, the Malaysian ringgit declined 0.23 percent, the China renminbi lost 0.2 percent, the Taiwan dollar fell 0.14 percent, the Japanese yen and South Korean won lost 0.1 percent each.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 103.68, up 0.12 percent from its previous close of 103.557.