Rupee strengthens against US dollar in early trade on Friday
The Indian rupee strengthened against the US dollar in early trade on Friday, supported by optimism over rising foreign fund inflows and aggressive RBI intervention in the market. Data showed that the Reserve Bank of India’s recent efforts to boost foreign-currency deposits have been effective, with total inflows reaching $136.377 billion. Rupee improved further as expectations of a September Federal Reserve interest rate hike faded following dovish comments from a central bank official. Federal Reserve Governor Christopher Waller stated he would support leaving interest rates unchanged if data continue to show moderating inflation pressures. The focus now shifts to the upcoming August US jobs report for further cues on the Fed’s policy outlook. Meanwhile, Foreign Institutional Investors (FIIs) sold equities worth Rs 2,345.87 crore on a net basis on Thursday, exchange data showed.
The partially convertible currency is currently trading at 94.49, stronger by 2 paise from its previous close of 94.51 on Thursday. The currency touched a high and low of 94.53 and 94.46 respectively.
