Rupee opens flat at 74.83 against dollar ahead of inflation data

The rupee on Thursday opened flat at 74.83 against the US dollar ahead of CPI inflation data which is scheduled to come later in the day.

The local currency on Wednesday declined 5 paise tracking marginal losses in equity markets and weak industrial production data.

On the domestic front, market participants will be keeping an eye on the inflation number and expectation is that price growth could be higher in July compared to the previous month.

The reaction of the rupee has been muted in the last couple of sessions despite a disappointing industrial production number. Losses have been restricted on the back of fund inflows in the equity segment that has been to the tune of $2.9 billion in this month.

“For the day, we expect USDINR (Spot) to quote in the range of 74.40 and 74.80,” brokerage Motilal Oswal Financial Services said.

The US dollar consolidated in a narrow range and restricted its gains amid fading hopes for a compromise between Republicans and Democrats over additional economic stimulus. Market sentiment has swung between optimism and pessimism.

“There are hopes that more stimulus is the most likely outcome because without it the US economic recovery could stall,” Motilal Oswal said.

From the US, market participants will be keeping an eye on weekly jobless claims that will be released today. Lower claims could extend gains for the greenback.