Rupee inches up on higher shares

Rupee inches up on higher shares

Mumbai: The rupee inched higher in early trades on Tuesday tracking gains in domestic shares but a further rise was capped due to lack of clear direction from mixed Asian currencies and ahead of August inflation data at 11 am.

At 9:20 am, the partially convertible rupee was at 46.34/35 per dollar, stronger than 46.40/41 at close on Monday.

Shares were trading up 0.7%.

The index of the dollar against six majors was down 0.1% and will be watched for cues, dealers said. Asian currencies were trading mixed.

The dollar was near its one-month low against a basket of currencies after suffering its steepest fall against the euro in two months the previous day on rising investors risk appetite.

India’s wholesale price index (WPI) in August probably rose 9.6% from a year earlier, easing from a rise of 9.97% in July. Forecasts by 15 economists ranged from 9.36% to 9.84%.

India’s industrial output accelerated much faster than expected in July on surging capital goods production, strengthening the case for further monetary tightening by the central bank to tame the near double-digit inflation.