Rupee strengthens against US dollar on Thursday
Indian rupee strengthened against the US dollar on Thursday tracking weakness in American currency against major overseas rivals after the minutes of US Fed’s latest meeting showed that policymakers were not in a hurry to cut interest rates anytime soon. Rupee sentiments improved further as economists in the Finance Ministry said with the stable downward movement in core inflation and moderation in food prices, the outlook for a reasonably low headline inflation rate is good. Core inflation for FY24 (up to January 2024) is also the lowest since FY21. Lower input prices and overall inflation can influence output growth positively, which in turn can further improve the prospects for exports. Foreign Institutional Investors were net buyers in the capital markets on Wednesday as they purchased shares worth Rs 284.66 crore, exchange data showed.
The partially convertible currency is currently trading at 82.92, stronger by 4 paise from its previous close of 82.96 on Wednesday. The currency touched a high and low of 82.9450 and 82.9125 respectively.
