In a brief overview of the financial landscape:
- The Indian rupee remained stable as traders adjusted positions in anticipation of U.S. inflation data, which will impact the Federal Reserve’s rate hike decisions.
- The rupee was trading at 82.9275 against the U.S. dollar, with little change from the previous session’s close at 82.9225.
- Most Asian currencies, except for the onshore Chinese yuan, experienced slight declines, while the dollar index edged up to 104.64.
- Market sentiment suggested a potential trimming of positions on USD/INR, especially on the long side, in anticipation of U.S. inflation data.
- A key resistance level for the rupee was identified at 82.80, with the possibility of further appreciation to 82.50 if breached.
- Rising crude oil prices raised concerns about the rupee’s strength, as Brent crude futures reached a 10-month high of $92.40 per barrel.
- Weak buying interest was noted for USD/INR, with the outlook remaining positive only above 82.78.
- U.S. core consumer price index (CPI) data for August was expected to show a 0.2% month-on-month increase, with potential implications for Fed tightening.
- Current futures indicated low odds of a rate hike in the upcoming month’s meeting, with approximately a 40% probability of one in November.