Indian Rupee: Cautious Ahead Of Key Data

The Indian rupee dipped lower against the dollar in early trades on Tuesday, 12 June 2018 ahead of release of key IIP and inflation data. Fresh demand for the US currency weighed down rupee but a higher opening in domestic stocks limited the fall. Besides, major currencies were mostly weak against the US dollar overseas as a historic US-North Korea summit got underway in Singapore.

The domestic currency opened at Rs 67.52 against the dollar and climbed to a high of 67.4150 so far during the day. In the spot currency market, the Indian unit was last seen trading at 67.4850. Yesterday, the rupee had ended 8 paise higher at 67.42 against the US currency, cutting short its two-day decline.

Domestic stocks edged higher in early trade. At 9:24 IST, the barometer index, the S&P BSE Sensex, was up 55.66 points or 0.16% at 35,539.13. The Nifty 50 index was up 20.50 points or 0.19% at 10,807.45. Marketmen are keenly awaiting a series of domestic and global events this week. Overseas, Asian stocks were trading mixed as US President Donald Trump and North Korean leader Kim Jong Un met for the first time at a landmark summit in Singapore. US stocks rose in a relatively quiet day yesterday, 11 June 2018 as investors started a hectic week during which three major central banks set interest rates.

Meanwhile, the dollar edged up to a three-week high against the yen on Tuesday amid hopes that the closely-watched U.S.-North Korea summit can pave the way towards a reduction in tensions between the two old foes. U.S. President Donald Trump said he had forged a good relationship with North Korean leader Kim Jong Un on Tuesday, as their two countries tried to reach a diplomatic breakthrough at a landmark summit in Singapore. The dollar index against a basket of six major currencies climbed 0.15 percent to 93.715 (DXY).