MUMBAI: The Indian rupee ended little changed on Wednesday ahead of a closely watched US consumer inflation print that is expected to influence expectations on Federal Reserve interest rate cuts.
The rupee closed at 83.9775 against the US dollar, barely unchanged from its close of 83.9750 in the previous session.
There was “decent dollar demand,” from importers and state-run banks through the session but inflows related to initial public offerings (IPO) helped the rupee, a foreign exchange trader at a private bank said.
Bajaj Housing Finance’s $782 million IPO closed on Wednesday during a week slated to be the busiest for Indian IPOs so far this year.
Meanwhile, dollar-rupee forward premiums rose, with the one-year implied yield touching a 16-month peak of 2.25%, aided by a rise in the overnight swap rate and a decline in US bond yields.
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