Indian rupee strengthens against US dollar on Thursday
Indian rupee strengthened against the US dollar on Thursday followed by firm domestic equities and robust macroeconomic data. The latest government data released on Wednesday showed India's CPI-based retail inflation slipped to seven-month low of 3.61% in February, creating space for the central bank to go for another cut in interest rate next month. Another set of data released by the NSO showed that the growth in the Index of Industrial Production, a measure of performance of industries, accelerated to 5% in January 2025. Meanwhile, a softer-than-expected US inflation print for February, a weaker American currency index and lower level of crude oil prices have also added strength to the domestic currency. However, some gains were limited by escalated tariff tensions worldwide that has continued to fuel foreign capital outflow from the Indian market. Foreign institutional investors offloaded equities worth Rs 1,627.61 crore on a net basis on Wednesday, exchange data showed.
The partially convertible currency is currently trading at 87.04, stronger by 18 paise from its previous close of 87.22 on Wednesday. The currency touched a high and low of 87.15 and 87.01 respectively.
