MUMBAI (Reuters) – The Indian rupee is expected to rise marginally on Monday as the dollar weakened against its major peers ahead of U.S. inflation data.
Non-delivery forwards indicated that the rupee would open at 82.99-83.01 per US dollar compared with 83.0350 in the previous session. The dollar index fell to 103.99, while several Asian markets ended the rest.
The rupee is coming off a losing week in the 82.88-83.07 range.
“Last week’s range of around 10 paise either side of 83.00 is more than likely until at least we know about US inflation,” said a currency trader at the bank.
“Not that the range has widened much after the data, maybe only 20 paise on either side.”
Data released on Tuesday is expected to show that US consumer prices rose 0.2% on the month, while the more important core gauge rose 0.3%.
The data came after a strong US jobs report and repeated objections from the Federal Reserve against imminent rate cuts. Both of these caused a significant reduction in expectations for a rate cut at the March meeting.
On Friday, the US Department of Labor published its annual revisions to the consumer price index. December’s overall inflation rate was revised downward, and November and October’s readings were slightly revised upwards.
“The revisions do not change the pace of the decline in inflation and are therefore unlikely to change the Fed’s views,” ANZ said in a note.
“With most members of the Fed asking for more evidence of progress in inflation before cutting rates, future impressions of inflation will be key.”
Meanwhile, India’s inflation data for December is due later today, with retail inflation expected to have edged up to 5.09%, the slowest pace in three months.
KEY INDICATORS: ** One-month rupee ex-delivery at 83.06; one-month onshore forward premium at 8 paise ** Dollar index at 103.99 ** Brent crude futures fell 0.4% to $81.8 a barrel ** US 10-year note yield at 4.18 %
** Foreign investors sold $487.5 million worth of Indian stocks on February 8, according to NSDL data.
** NSDL data shows that foreign investors bought a net amount of $319.9 million in Indian bonds on February 8.
(Reporting by Nimesh Vora; Editing by Eileen Soreng)