Rupee strengthens against US dollar in early trade on Thursday
The Indian rupee strengthened against the US dollar in early trade on Thursday amid falling crude oil prices, which dropped to levels seen before the West Asia conflict as crude shipments through the Strait of Hormuz increased and indirect negotiations between the United States and Iran showed signs of progress. Investors also took note of report that foreign investors poured nearly $5.3 billion into Indian bond markets during June, marking the first month of positive inflows after three consecutive months of outflows. Rupee improved further after Federal Reserve Chair Kevin Warsh said inflation risks have eased, signalling there was no urgency to raise interest rates. Investors are awaiting key monthly US jobs report due later in the day, for fresh insights into labour market conditions and greater clarity on the Federal Reserve’s policy outlook. Meanwhile, Foreign institutional investors (FIIs) sold equities worth Rs 1,140.50 crore on a net basis on Wednesday, exchange data showed.
