Indian rupee rises 14 paise to 81.14 against US dollar

The rupee gained 14 paise to 81.14 versus the US currency
in morning trade on Tuesday on encouraging inflation data and easing crude oil
prices. Continuous foreign fund inflows also supported the local, according to
FX traders. 

At the interbank foreign exchange, the Indian currency
started at 81.18 against the US dollar, then gained further ground to touch
81.14, recording a rise of 14 paise over its previous close.

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The rupee slipped by 50 paise to settle at 81.28 against
the US currency on Monday.

The US dollar index, which measures the greenback’s
strength against a basket of six currencies, surged 0.30% to 106.97.

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Asian currencies started the week on a positive note,
keeping up the momentum fuelled by softer-than-expected US inflation data. The
data has encouraged traders to calibrate again the pace of Fed rate hikes.

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The Japanese yen was among the worst-performing Asian
currencies on Tuesday after the country’s economy unexpectedly shrank in the
third quarter. The yen slipped 0.4% to 140.48 against the dollar after the data
showed the world’s third-largest economy shrank at a yearly rate of 1.2% in the
third quarter, as high inflation weighed heavily on business and consumer
spending.

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The Chinese yuan gained 0.3% after the People’s Bank of
China held interest rates for the third month in a row. The Indonesian rupiah
fell 0.4%.

In the domestic stock market, the Sensex was trading 21.13
points or 0.03% lower at 61,603.02. The Nifty rose 3.50 points or 0.02% to
18,332.65.

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According to stock exchange data, foreign Institutional
Investors (FIIs) were net buyers in the capital markets on Monday as they
purchased shares worth Rs 1,089.41 crore.

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Government data showed that India’s retail inflation, which
is measured by the Consumer Price Index (CPI), eased to 6.77% year-on-year in
October from 7.41% in September 2022. The wholesale price index-based inflation
fell to 8.39% in October, a 19-month low mainly on account of subdued rates of
food items.