Rupee strengthens against US dollar in early trade on Thursday
The Indian rupee strengthened against the US dollar in early trade on Thursday after Brent crude fell below $78 per barrel following reports that the US and Iran had digitally signed an interim peace deal to halt the conflict and restore traffic through the Strait of Hormuz. Rupee improved further after data showed that Foreign institutional investors (FIIs) turned net buyers and purchased equities worth Rs 101.59 crore on a net basis on Wednesday. Although, gains were limited by US Federal Reserve's hawkish stance and the broad strength of the American currency in the overseas market. The Federal Reserve held interest rates steady on Wednesday at a range of 3.5% to 3.75% as widely anticipated and signalled that their next move might be to raise interest rates, not cut them, a striking reversal at Kevin Warsh’s first meeting as chairman and a sign of how sharply the inflation outlook has turned.
