The Indian rupee opened 3 paise lower at 88.13 against the US dollar on September 11, compared to 88.10 at the previous close, as Asian currencies weakened.
“The market sentiment is driven by anticipation of the upcoming CPI release and expectations of a US Fed rate cut. For the day, we expect the range to be between 87.80 and 88.30,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
Asian currencies logged small losses on Thursday while the dollar index inched higher, with investors awaiting US inflation data due later in the day. According to Bloomberg, the Philippine peso fell 0.12 percent, the South Korean won 0.10 percent, the Taiwanese dollar 0.07 percent, and the Singapore dollar 0.06 percent.
Amit Pabari, Managing Director at CR Forex Advisors, said softer US jobs data and rising bets on Fed rate cuts are offering support, but ongoing tariff concerns could limit the scope for any meaningful recovery.
Core CPI, which excludes food and fuel, is estimated to have risen 0.3 percent for a second consecutive month, according to a Bloomberg survey. A weaker-than-expected reading may prompt speculation of a 50-basis-point Fed cut next week.
The combination of moderating jobs growth and manageable inflation should keep the Fed on track to cut rates, with a 25-basis-point reduction expected in September, followed by three additional consecutive cuts of the same size by January 2026, said Ulrike Hoffmann-Burchardi of UBS Global Wealth Management.
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