The Asian currency has hovered around the key 145-per-dollar level for the past few weeks, leading traders to keep a wary eye on signs of intervention by Tokyo.
The rupee ended at 83.04 against the U.S. dollar, compared with 82.7475 in the previous session.
The Indian economy likely grew at the fastest pace in four quarters in April-June, with economists expecting GDP to have grown by 7.7 percent on a year-on-year basis, according to a Moneycontrol survey.
Indian rupee opened marginally higher against US dollar in a thinly traded volume tracking ahead of key data this week.
The rupee may be allowed to slowly weaken towards 84 in the next six months if the current situation of dollar strength and CNH weakness persists, said the treasury head and executive director of Finrex Treasury Advisors
Dollar index rose as traders bet that US federal reserve chairman Jerome Powell would confirm expectations of higher for longer rates in his speech at Jackson Hole later on Friday
The current noise about movement toward a currency shared by the BRICS nations — Brazil, Russia, India, China and South Africa — may not amount to much. Precedent isn't encouraging: Seven years after the IMF added the yuan to its basket of reserve currencies, its share in the global cache is minute
Investors are eagerly awaiting insights from the Federal Reserve's Jackson Hole symposium to assess the possibility of interest rates stabilizing as the ongoing hiking cycle concludes.
The US central bank's July meeting minutes show most officials were concerned about rising inflation, possibly leading to more tightening
The People’s Bank of China set its so-called fixing at 7.2006 per dollar compared to an average estimate of 7.3047 in a Bloomberg survey with traders and analysts.
US bond yields surged to a 15-year peak, driven by robust economic data that dispelled assumptions of a US Federal Reserve pause or reversal in interest rate hikes.
Previously, Russia saw a large trade surplus because of high oil prices and plummeting imports after Russia invaded Ukraine. But oil prices have dipped this year, and it’s more cumbersome for Russia to sell its oil due to Western sanctions, including price caps on crude and oil products like diesel.
The dollar gained after US PPI data was higher than forecast, and safe haven demand on risk aversion in global markets.
At a press conference Friday, central bank deputy director Alexei Zabotkin said the bank is adhering to a floating exchange rate because "it allows the economy to effectively adapt to changing external conditions."
On Thursday, the RBI decided to maintain the current interest rate at 6.5%. RBI also adjusted the inflation projection for the fiscal year 2023-24 to 5.4% from the previous estimate of 5.1%.
The RBI, which will announce the policy decision on August 10 morning , is expected to hold rates but its inflation and growth projections will be closely watched
Traders turn cautious as the RBI's monetary policy committee begin its meeting in a data-heavy week which will also see the release of inflation, industrial production and manufacturing production numbers
The Reserve Bank of India's monetary policy meeting is scheduled from August 8-10
Rising oil prices, which gained more than 1 percent on August 2, and growing demand of the American currency weighed on sentiment
Crude oil prices jumped again after Chinese manufacturing PMI data released on Monday was lower than expected and increased chances of Chinese stimulus
The benchmark Sensex and Nifty fell for five out of six sessions. Sensex and Nifty lost around 2 percent in the last six trading sessions.
Indian rupee opened weaker and hit near two week low against US dollar tracking losses in the local equity and Asian currencies markets.
The dollar index, which measures the greenback’s strength against major currencies, was trading at 100.84, down 0.05 percent from its previous close of 100.88.
US Fed rate decision on Wednesday where it is expected to hike Rates by 25bps
Benjamin Franklin’s paper money contains flecks of mica, also known as muscovite or isinglass. These shiny patches were most likely an attempt to combat counterfeiters, who would not have had access to this special paper