Rupee Ends Flat Against Dollar
The US dollar index traded in a narrow range near a five-month low as a stronger euro pressured the greenback.
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The Indian rupee ended flat against the US dollar on Wednesday as market participants await the release of US consumer-price-index print for February.
The Indian unit ended flat at 87.21 against the greenback, according to Bloomberg data. On Tuesday, it settled 12 paise higher against the dollar.
The rupee opened weaker at 87.27 as the dollar index, which hit a six-month low in the previous day, rebounded in the Asia session after initial remarks from the US that it would double tariffs on steel and aluminum imports from Canada. However, the US later clarified that it won't double the tariffs.
The DXY was trading 0.10% higher at 103.52 as of 3:25 p.m., according to Bloomberg data.
The DXY traded in a narrow range so far near a five-month low as a stronger euro pressured the greenback, according to Ritesh Bhansali, director of Mecklai Financial Services Ltd. "Optimism over a Ukraine ceasefire boosted the euro, while uncertainty over Trump's tariff policies and recession risks added to dollar weakness."
According to a Bloomberg survey, the US core CPI is expected to come at 0.3% on the month in February and 3.2% on the year. The headline inflation data will provide fresh cues about the Federal Reserve's policy path.
On the domestic front, all eyes will shift to data releases, including industrial production and inflation data. With these factors playing out, the USDINR pair is expected to trade within a range of 86.80–87.50 in the near to medium term, according to Amit Pabari, managing director of CR Forex Advisors.
