Rupee Closes Flat Against Dollar

The Indian rupee closed flat against the US dollar on Wednesday after nearing the Rs 84 mark in the previous session.

The rupee closed flat after appreciating 2 paise higher from previous close to 83.95 against the US dollar, according to Bloomberg. It had closed at Rs 83.97 on Tuesday.

The rupee had appreciated by six paise to open at Rs 83.91 on expectations of substantial inflow after India's weight on key MSCI equity index rises to record high.

"Looking ahead, India's weight on the MSCI Global Standard Index, which tracks emerging market stocks, has reached a new record high, positioning it for substantial inflows," said Amit Pabari, managing director of CR Forex Advisors.

However, rising crude oil prices and a steady dollar may have limited the gains in the rupee.

The US dollar index was at a downturn of 0.11% trading at 102.45 apiece at 3:45 p.m. IST. Brent crude prices were at an uptick of 0.36% trading at $80.96 per barrel at 3:46 p.m. IST.

The US dollar index was initially up 0.01% at 102.6, and the Brent crude oil price had risen 0.4% to $81.01 per barrel as of 9:00 a.m.

Oil prices rose in early trade, recovering from Tuesday's losses. This rebound was driven by an industry report indicating a significant decrease in US crude inventories and ongoing tensions in the Middle East.

Wednesday will see the release of the US consumer inflation report, and recent data showed that the US producer price index increased less than anticipated. The PPI report's categories, which determine the Federal Reserve's preferred inflation measure, exhibited a generally subdued trend.

With inflation data set to be released on Wednesday, expectations lean towards a softer outcome, driven by recent weak job data signalling an economic slowdown, according to Pabari.