Rupee trades higher at 83.30 against US dollar amid gains in equities

Today, it's expected to remain within a range as the RBI intervenes by buying and selling dollars

The Indian rupee opened marginally higher against the US dollar on December 15, tracking gains in the local equity markets. At 9.10am, the home currency was trading at 83.30 to a dollar, up 0.04 percent from its previous close of 83.33.

The rupee rose by 13 paise on December 14 but lost ground due to dollar buying pressure. It is expected to remain within a range during the day as the Reserve Bank of India (RBI) intervenes by buying and selling dollars.

Despite foreign portfolio investors (FPIs) bringing in inflows, the RBI absorbed them, selling at 83.40, likely keeping the rupee stable, traders said.

Recent updates suggest that while the US Federal Reserve leans dovish, the European Central Bank and the Bank of England seem slightly hawkish.

The US central bank has signalled three rate cuts in 2024, more than what is anticipated by other central banks, potentially increasing global dollar liquidity and supply. This could negatively affect the dollar, traders said.

Asian currencies were trading mixed. The Philippines peso was up 0.2 percent, while the Malaysian ringgit, the Taiwan dollar and the South Korean won were up 0.5 percent each. Among losers, China renminbi fell 0.12 percent, while Singapore dollar, Indonesian rupiah and Japanese yen were down 0.07 percent each.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.94, down 0.02 percent from its previous close of 101.96.

(With agency inputs)

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