Rupee strengthens against US dollar on Friday
Indian rupee strengthened from its all-time low level against the US dollar on Friday, even as strong economic data and Federal Reserve's hawkish tilt pushed US dollar to 2 year high. An unexpected upward revision to third-quarter US GDP, a dip in jobless claims and an upside surprise in existing home sales showed resilience in the US economy and weakening the need for imminent rate cuts. Likely intervention by the Reserve Bank of India helped rupee to strengthen against the dollar. However, weak domestic equities and foreign fund outflows have limited further gains in rupee. Foreign Institutional Investors were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 4,224.92 crore, exchange data showed.
The partially convertible currency is currently trading at 85.09, stronger by 4 paise from its previous close of 85.13 on Thursday. The currency touched a high and low of 85.12 and 85.05 respectively.
