Rupee vs dollar: INR gains 21 paise to 81.97 against USD

"The US Dollar faced significant pressure following lower-than-expected inflation data, leading to a substantial rally in emerging market currencies. US inflation dropped to 3.0% year-on-year, down from the previous figure of 4 percent," said Amit Pabari, the managing director of CR Forex Advisors.

He said the rupee also benefited from significant foreign capital inflows, as recent data revealed that international investors purchased Indian stocks amounting to $6.7 billion in June and $2 billion in July. "In the coming days, it is projected that the USD-INR currency pair will likely trade within the range of 81.80-82.70, This expectation is based on the presence of inflows on one side, while the demand for dollars from importers is anticipated to limit any significant decline in the exchange rate. RBI’s intervention around 81.80 will be watched if it allows the pair to break below the same," Pabari added.

Both Indian benchmark indices, Sensex and Nifty 50, were trading in the green around 11.20am today, July 13, 2023.