Rupee Today: The domestic currency gained against a retreating dollarThe rupee rose on Thursday as the dollar retreated slightly on solid US economic data, which cheered risk assets, but higher crude prices capped the domestic currency’s gains.Bloomberg showed the rupee was last changing hands at 82.7513 per dollar, compared to Wednesday’s close of 82.8188.”Another day of range bound session for the rupee between 82.64 and 82.81, with trades oscillating between buying the dollar dips and selling on upticks, in presence of the RBI,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.While a pullback in the dollar helped the rupee, a rise in crude prices capped gains as the country depends on imports for over three-fourths of its oil needs.Oil prices rose as data showed a larger-than-anticipated reduction in US crude stockpiles, although a substantial snowstorm was forecast to cover much of the United States and reduce demand for fuel.The dollar declined as better-than-anticipated US consumer confidence statistics and China’s renewed commitment to prioritising economic growth lured investors back into risk assets.According to Bloomberg, Jefferies ‘ Analyst Brad Bechtel noted that incremental shifts in capital flows and the interest rate were key for the pair.”The Fed is close to done hiking, which means that real rates in the US are done rising and will moderate a bit, taking pressure off of the dollar,” he added.The latest gains have been made as trading enters its year-end phase, Federal Reserve officials have stopped speaking, and a few encouraging data points and earnings prints have emerged.The Bank of Japan’s unexpected hawkish tilt on Tuesday, when it chose to increase the upper limit of its trading bonds on 10-year notes, has also temporarily subsided.Featured Video Of The DayIndia’s Economy To Grow At 6.9% This Year: World Bank
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