Rupee strengthens against US dollar in early trade on Friday
The Indian rupee strengthened against the US dollar in early trade on Friday, backed by a weaker American currency overseas as subdued US inflation data prompted traders to dial back expectations for a Federal Reserve rate hike in September. Data released on Thursday showed US producer prices were unchanged in July, providing further evidence that price pressures are not broadly accelerating following Wednesday’s tame CPI report. Moreover, near-daily intervention by the Reserve Bank of India also supported rupee sentiment. However, some gains were limited by the withdrawal of foreign funds from domestic equities and rising crude oil prices amid geopolitical uncertainties. Foreign institutional investors (FIIs) offloaded equities worth Rs 510.69 crore on a net basis on Thursday, exchange data showed.
The partially convertible currency is currently trading at 95.42, stronger by 3 paise from its previous close of 95.45 on Thursday. The currency touched a high and low of 95.4350 and 95.3875 respectively.
