Rupee posts small gains for a second day; premiums inch up

The Indian rupee saw small gains on Tuesday for the second consecutive day, but persistent forward and cash dollar demands continued to restrict the local unit in a tight range. The rupee finished at 82.6050 against the US dollar, enrolled in the previous session. The dollar index was weaker in early India trading, rebounding by 0.1% at closing. Traders are awaiting the U.S. inflation reading and events of next week’s Federal Reserve’s policy review, with the US inflation considered the most critical determinant for the USD/INR rates, following which the Federal Reserve could opt to hike rates next Wednesday.