Indian rupee nudges up on RBI intervention; investors eye inflation data

Business Recorder reported that the Indian rupee closed modestly higher, rising 0.1% to 95.33 per U.S. dollar against 95.4350 a session earlier. Dollar sales by state-run banks, most likely made on behalf of the Reserve Bank of India, helped limit losses. Concerns about the Middle East conflict and rising oil prices, however, capped how far the currency could gain.

The central bank has stepped into the foreign exchange market repeatedly during August, after the rupee came close to breaching its record lows last month. The currency's all-time low of 96.96 was reached in May. Traders said caution ahead of the upcoming inflation figures also restrained gains.

Investors are now focused on inflation numbers. A Reuters poll points to Indian retail inflation climbing to 4.5% in July, while BofA Global Research analysts expect core inflation to stay below 3.8%. In the United States, consumer prices are forecast to edge up 0.1% in July after a 0.4% fall in June, and the figures could shape expectations for Federal Reserve rate increases.