Rupee breaks the fall, opens 4 paise up at 88.67 against dollar

Indian rupee

The rupee opened 4 paise up on September 29 after remaining under pressure for the last few sessions as Asian currencies rallied.

The rupee opened at 88.67 against the US dollar after closing at 88.71 in the previous session.

Asian currencies gained and equities rose following US inflation data. The personal consumption expenditures price index posted a 0.3 percent gain for the month, putting the annual headline inflation rate at 2.7 percent, the American commerce department reported.

Excluding food and energy, the more closely followed core PCE price level was 2.9 percent on an annual basis after rising 0.2 percent for the month.

The headline annual inflation rate was a slight increase from the 2.6 percent in July while the core rate was the same.

According to Bloomberg data, the South Korean won appreciated 0.57 percent, Indonesian rupiah 0.47 percent, Japanese yen 0.39 percent, Offshore Chinese renminbi was 0.30 percent and the Malaysian Ringgit was up by 0.29 percent.

The rupee shed 0.7 percent last week, sinking to an all-time low of 88.7975, with the US H1-B visa fee increase adding to bearishness.

"For now, USD/INR faces resistance at 89–89.20 and support near 88.40. The tilt appears slightly in favour of appreciation, especially if global cues continue to balance out. A close below 88.20 could even mark the first sign of a trend reversal," said Amit Pabari, managing director at CR Forex Advisors.

(With agency inputs)