The rupee closed at 83.52/$1 on Wednesday, down four paise against Wednesday’s previous close of 83.48/$1, according to Reuters.
OPEC maintained its 2024 and 2025 global oil demand growth forecasts at 2.25 million barrels per day and 1.85 million barrels per day, respectively, Reuters said.
Crude oil prices eased to $84.45 a barrel against $84.66 yesterday, according to Reuters. However, oil marketing companies are buying crude on the assumption that it could rise further, traders said.
A rise in crude oil prices poses upside risks to India’s trade deficit and inflation as the country is a major importer of the commodity.
The rupee’s weakness against the dollar, however, curbed hopes of a rate cut by the US central bank in the coming months, following comments by Federal Reserve Chairman Jerome Powell.
“The most recent labor market data sent a pretty clear signal that the labor market has cooled significantly,” Powell said.
Some segments of the market interpreted Powell’s comments as a sign that the Fed could cut interest rates as early as September if incoming data points to a slowdown in the US economy.
The yield on 10-year benchmark government securities remained flat. According to CCIL, the yield stood at 6.97% today, as against 6.98% the previous day.
The one basis point drop could be attributed to a softening in US bond yields from 4.32% to 4.26%, market participants said.
Market players are also waiting for US inflation data and Indian inflation data tomorrow.
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