Rupee strengthens against US dollar in early trade on Friday
The Indian rupee strengthened against US dollar in early trade on Friday, boosted by dropping US Treasury yields, a weaker American currency, and likely intervention from the Reserve Bank of India (RBI). Rupee sentiments improved further by falling Brent crude prices below $103 per barrel after US President Donald Trump said that the United States will not launch an attack on Iran before November's US midterm congressional elections. However, relentless foreign fund outflows from domestic equities kept the Indian rupee under severe pressure, as Foreign Institutional Investors offloaded equities worth Rs 12,943.58 crore on a net basis on Thursday. The market will focus on next week’s critical US Consumer Price Index (CPI) data release for further cues on the Fed’s interest-rate trajectory. Traders are bracing for the possibility of another US rate hike this year.
The partially convertible currency is currently trading at 96.59, stronger by 29 paise from its previous close of 96.88 on Thursday. The currency touched a high and low of 96.7750 and 96.51 respectively.
