With the dollar softening post lower than anticipated US inflation, Rupee gains 15 paise to open at 81.11 after closing at 81.26 against dollar on Monday evening. The domestic currency made gains thanks to sliding oil prices and a hope among investors that the US Federal Reserve will keep interest rate hikes light. But the assertion that the fight against inflation won't stop, has also adversely affected market sentiment.
A healthy flow of investments from foreign players into Indian assets also helped the Rupee gain strength against the US dollar. Food prices have also eased, as per retail inflation based on consumer price index data released on Monday. The rise of other Asian currencies has also helped create positivity for the Rupee to recover.
After making major gains to reach close to 80 against the dollar to start the week, the Rupee again shed value to surge past 81 on closing bell. The above trend has raised concerns if the Rupee is going to remain between 80 and 83, without sliding back to its previous position if it doesn't hit 84 in the coming months.
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