Spot rupee ended at 95.55/56 to a dollar level after opening at 95.69/70 level. The rupee initially dipped to a low of 95.80 level, as crude oil prices climbed higher with the Brent touching $109 level. Persistent USD selling above 95.70 level - suspected to be due to RBI’s USD selling intervention, saw rupee climbing towards 95.60 level several times. Equity market benchmarks ended flat today.

 
The US dollar is trading steady, with the DXY holding around 99.13 ahead of tonight’s US inflation report. Markets are focused on the August CPI data, with headline inflation expected to remain at 3.4 y/y, while core CPI is forecast to ease to 2.4 y/y. A hotter-than-expected reading could reinforce expectations for a more cautious Fed and provide further support to the dollar.

Spot rupee opens at 95.69/70 to a dollar level today against previous close at 95.44/45 level. The rupee is under pressure as crude oil prices continue to climb higher- now past $108/bbl. Equity market benchmarks are trading about 1 lower in early trades.

The DXY is trading higher 99.12, as mixed US data leaves the Federal Reserve outlook relatively balanced. Initial and continuing jobless claims remain historically contained, with both weekly and year-on-year measures pointing to a resilient labour market and little evidence of a meaningful deterioration in employment conditions.