The Indian rupee showed signs of strength on Thursday, opening at 83.94 against the US dollar, a slight increase of 2 paise from the previous day’s close of 83.96. This rise occurred as the dollar index softened, prompting investors to keep a close eye on the upcoming US CPI inflation data.
The dollar index, which had increased by 0.37% in the prior session following the release of the Federal Reserve’s September meeting minutes, decreased by 0.06% to 102.8630. The minutes indicated that Fed Chair Jerome Powell encountered some resistance regarding a proposed half-point interest rate cut, with several officials favoring a more modest quarter-point reduction.
In the oil market, Brent crude prices climbed by 0.77% to $77.17 per barrel in early Asian trading. This increase is attributed to rising concerns over potential supply disruptions in the Middle East, particularly as Israel considers striking oil-producing Iran.
Additionally, the impact of Hurricane Milton, which recently made landfall on Florida’s west coast, has led to heightened demand in the world’s largest oil-consuming nation, further contributing to the surge in oil prices.
Overall, these developments reflect a complex interplay of currency dynamics and geopolitical factors influencing the market, with traders eagerly awaiting further economic indicators from the US.
