Rupee rises 23 paise against US dollar
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New Delhi: Rising for the third straight session, the rupee gained 23 paise to 82.18 against the US dollar on Wednesday, as weakness in the American currency overseas boosted investor sentiment.
However, a surge in crude oil prices capped the gains in the local unit, forex traders said.
At the interbank foreign exchange market, the local unit opened at 82.29 against the US dollar and settled 23 paise lower at 82.18 against the previous close.
During the day, the domestic unit witnessed an intra-day high of 82.16 and a low of 82.32.
This is the third straight day of rise for the rupee, during which it has gained 44 paise.
On Tuesday, the rupee had closed at 82.41 against the dollar.
Meanwhile, retail inflation rose to a 3-month high in June on rising prices of kitchen essentials, while the factory output expanded at a faster pace of 5.2 per cent in May, according to government data released on Wednesday.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities the rupee appreciated against the Dollar on Wednesday for the third straight session amid speculation that the US inflation could ease further and raised bets that the US Fed may not have to hike beyond July.
The local unit has appreciated by 0.6 per cent so far this week and further appreciation is possible if the data remains in favour.
Most Asian peers, with the exception of Thai Baht, have appreciated this Wednesday and aided sentiments.
"In the overseas markets, the US Dollar Index fell on Wednesday afternoon in Asian trading ahead of the crucial CPI numbers and assuming that there are no upside surprises on the number, we could presume that the July hike could be the last in the Fed tightening cycle," Iyer said.
Markets have already factored in a 25-bps rate hike at its July meeting.
The Euro and the Yen gained, while the Pound eased from the highs against the US dollar in the afternoon session on Wednesday ahead of data.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.26 per cent to 101.47.
Brent crude futures, the global oil benchmark, advanced 0.38 per cent to USD 79.70 per barrel.
Traders said investors are awaiting key inflation data releases from the US and India for further cues.
On the domestic equity market front, the 30-share BSE Sensex closed 223.94 points or 0.34 per cent lower at 65,393.90. The broader NSE Nifty declined 55.10 points or 0.28 per cent to 19,384.30.
Foreign Institutional Investors (FIIs) emerged as net sellers in the capital markets on Wednesday as they sold shares worth Rs 1,242.44 crore, according to exchange data.
The US dollar declined on expectations that a slowdown in inflation may lead to a slower pace of rate hike by the US Federal Reserve, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.
Though the US central bank may hike rates in July, a further rate rise in September may be data dependent, Choudhary said.
"We expect the rupee to trade with a slight positive bias, weakness in the US dollar and improved global risk sentiments. Sustained foreign inflows may also support the rupee while a rise in crude oil prices may cap a sharp upside," Choudhary said.
Market participants may remain cautious ahead of India's inflation and IIP data and US inflation data. "We expect USD/INR spot to trade in between 81.80 to 82.80 in the near-term," Choudhary added.
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KKR defeat LSG via Super Over
Lucknow (PTI): Kolkata Knight Riders edged Lucknow Super Giants via Super Overs in a battle between two bottom-placed teams in the IPL, here on Sunday.
Chasing a modest 156, LSG suffered a batting collapse and managed to tie the contest and take it to Super Over with No. 9 Mohammed Shami striking a last-ball six against a wayward Kartik Tyagi, who leaked 16 runs in the final over.
But Sunil Narine bowled a stunning Super Over conceding just one run and taking two wickets to give KKR an easy target.
Rinku Singh then finished the chase with a boundary off first ball from Prince Yadav.
Earlier the KKR were in deep trouble with 93/7 in 15 overs but Rinku smashed a sensational 83 not out from 51 balls including four sixes in a row in the final over to lift them to 155/7.
Cameron Green (34) was the only other batter to reach double-digit scores as KKR suffered a familiar batting meltdown with Mohsin taking his maiden fifer.
In reply, LSG continued their dismal show with the bat to succumb to their fifth loss in a row.
Brief Scores:
Kolkata Knight Riders 155/7; 20 overs (Rinku Singh 83 not out, Cameron Green 34; Mohsin Khan 5/23). Lucknow Super Giants 155/8; 20 overs (Rishabh Pant 42). KKR won via Super Over.
