Rupee strengthens against US dollar in early trade on Wednesday
The Indian rupee strengthened against the US dollar in early trade on Wednesday, supported by Reserve Bank of India interventions to curb dollar demand and speculative trading. The rupee also gained by tracking weakness in the American currency overseas after New York Fed President John Williams indicated that while one more rate hike this year would be appropriate, he does not foresee the need for additional hikes in 2027. Investors are awaiting September’s consumer inflation data for further cues on the Federal Reserve’s next interest rate decision. However, some gains were limited by foreign fund outflows and high energy prices following Houthis’ attacks on Saudi targets. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,305.13 crore on a net basis on Tuesday, exchange data showed.
The partially convertible currency is currently trading at 94.91, stronger by 45 paise from its previous close of 95.36 on Tuesday. The currency touched a high and low of 95.0650 and 94.76 respectively.
