MumbaiThe Indian rupee is tipped to open little changed against the dollar on Monday as traders await key U.S. inflation data and assess the outlook for oil prices.

The rupee is seen trading at around 79.60 in early deals, barely changed from 79.58 in the previous session, and after posting its best weekly performance in six.

The rupee "has done well to move away from the 80" level and now it will be a question of whether it can "manage to hold" near its current level, a trader with a Mumbai-based bank said.

"Tomorrow's U.S. inflation data and how the dollar and Treasury yields react will be critical," the trader said. "And then, you will have to watch how sustainable the recent pullback in oil is."

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Ahead of the U.S. consumer inflation report, Federal Reserve officials continued their hawkish rhetoric. Fed Governor Christopher Waller said he supports "a significant increase at our next meeting," while St. Louis Fed President James Bullard reiterated his call for a hike of 75 basis points.

The odds of 75-basis-point rate hike are currently at just below 90 per cent.

On a month-on-month basis, U.S. headline consumer prices are expected to decline by 0.1 per cent. Core prices, meanwhile, likely rose 0.3 per cent.

The dollar index slipped on Monday to 108.60 and was headed for a fourth straight day of losses. The index has pulled back from recent highs of near 110.80, thanks to a recovery in the euro on hawkish European Central Bank signals.

Brent crude futures dipped to near $91.50 per barrel after choppy trading last week. The contract had slipped to $87.24 last Thursday, the lowest in seven months, on concerns over demand.

Meanwhile, data due later in the day is expected to show India consumer inflation rose 6.9 per cent last month.

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