INR seen supported by weak dollar overseas

Dollar weakness overseas is seen supporting the Indian rupee in opening trades on Thursday. INR opened at Rs 87.48 per dollar and climbed to a high of 87.39 so far during the day. Yesterday, rupee appreciated 20 paise to close at 87.43 against the US dollar, as a weak greenback and a positive momentum in domestic equity markets supported. Domestic shares eked out modest gains after official data showed India's consumer price inflation eased more-than-expected in July to the lowest level in just over eight years, bringing inflation below RBI's tolerance band and raising prospects of another interest rate cut. Firm global cues and a weaker dollar also underpinned sentiment as in-line U.S. inflation data cemented expectations of interest rate cuts by the Federal Reserve in September. The benchmark BSE Sensex rose 304.32 points, or 0.38 percent, to 80,539.91. The broader NSE Nifty index ended up 131.95 points, or 0.54 percent at 24,619.35.

 

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