The Indian rupee opened higer by five paise at 67.88/$ against Thursday close at as against the previous close of 67.94/$.
Precious pack remained on the defensive, impacted by rising probability of a US Fed rate hike and ensuing strong US dollar. In this regard, credit markets are also pricing a move on US interest rates, with 10yr US sovereign bond yields surging to 2.2%.
In the currency markets, volatility remains intense, with US dollar index marching above 100. Weakness is particularly palpable in Euro and Yen amid the developed market currencies.
On the economy front, India’s retail price inflation fell to a 14-month low of 4.2% in October from 4.39% a month ago as inflation in fruits and pulses softened, raising the chances of an interest rate cut by the Central Bank.
India’s trade deficit widened to $ 10.16 billion in October from $ 8.34 billion in the previous month, as gold imports more than doubled to $ 3.5 billion from a year ago. Merchandise exports grew 9.6% year-on-year to $ 23.5 billion, while imports expanded 8.11% year-on-year to $ 33.67 billion, the data showed.
The Indian Rupee closed lower by 20 paise at 67.94/$. The local unit hit a high of 67.93/$ and a low of 68.02/$ today.
The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.77 while for the Euro it was 72.84. The RBI’s reference rate for the Yen stood at 62.12; reference rate for the Great Britain Pound (GBP) stood at 84.6154.