Upon Thursday's opening, the Indian rupee is expected to exhibit minimal fluctuations, as the unexpectedly elevated US inflation figure failed to exert a lasting influence on the US dollar.
Projections from non-deliverable forwards suggest that the rupee will commence trading at a level approximately identical to its previous closing rate of 82.9850.
The dollar index currently stands at 104.78, roughly mirroring its pre-inflation data position.
Following the release of the inflation data, US Treasury yields initially surged but later receded, now resting at levels lower than those observed before the inflation report.
In August, the US consumer price index registered a month-on-month increase of 0.6%, marking the most significant rise since June 2022. Concurrently, the core CPI, which holds greater significance for economists, edged up by 0.3%, slightly surpassing economists' expectations.
The marginal uptick in core inflation is unlikely to influence the decisions of the upcoming meeting of the US Federal Reserve scheduled for next week.
Goldman Sachs, in a statement, expressed the view that despite this slight deviation from consensus expectations, the September Federal Open Market Committee meeting is expected to yield an unchanged policy stance.
Furthermore, Goldman Sachs reaffirmed its prediction that the Federal Reserve will opt to refrain from raising interest rates at the November meeting.
However, investor sentiment appeared somewhat uncertain in this regard, as futures market data indicated a nearly 40% probability of an interest rate hike occurring in November.
ANZ stated that the inflation figures for August did not warrant a revision of Fed expectations.
"Nevertheless, the data do indicate that the Federal Reserve should remain vigilant regarding the possibility of any resurgence in inflation during the autumn," ANZ commented.
Attention is now shifting to the forthcoming European Central Bank rate announcement later in the day, with investors estimating a nearly 60% likelihood of a 25-basis-point rate increase.
In Asian trading, the euro exhibited a slight uptick against the dollar.
