Rupee ends higher; traders await US inflation data, Fed decision

the Indian rupees Friday ended higher, tracking strength in most Asian currencies, while traders focused on US inflation data next week, ahead of the Federal Reserve’s interest rate decision.

The rupee closed at 82.4625 per dollar, compared to 82.5625 in the previous session. The rupee snapped a two-week winning streak, falling 0.19 percent this week.

Jigar Trivedi, senior research, currency and commodities analyst at Reliance Securities, said US inflation data and the Fed’s policy decision were crucial to the movement of the rupee, which was range bound.

The rupee was trading between 82.42 and 82.68 for the week.

Continuous foreign money inflows helped rupee stocks, while the dollar index retreated from two-month highs as prospects of a rate hike in June diminished.

Most Asian currencies, with the exception of the Chinese yuan, rose on Friday.

The increase in US jobless claims reinforces the pause for the Federal Reserve when it meets next week. Ahead of the lull leading up to the June 13-14 meeting, two Fed officials have indicated they would prefer a pause at this month’s meeting.

At the meeting, the Fed will have on hand the US inflation report for May, due for release on June 13. Economists polled by Reuters expect a 0.3 percent month-over-month increase in the core consumer price index (CPI) and a 0.4 per cent rise in the core consumer price index.

Traders will also look forward to Indian inflation data due on Monday after the central bank kept interest rates steady this week but indicated it was focused on curbing inflation to its 4 percent target.