Rupee strengthens against US dollar on Thursday
The Indian rupee strengthened against the US dollar in early trade on Thursday due to likely support from the Reserve Bank of India and fresh foreign fund inflows into the capital market. Foreign Institutional Investors purchased equities worth Rs 1,171.71 crore on Wednesday, exchange data showed. Meanwhile, investors are awaiting key US inflation data later in the week that could impact the Federal Reserve’s stance on further interest-rate cuts. Attention is also turning to key central bank decisions in Britain, Europe and Japan. Rupee gained further after Federal Reserve Governor Christopher Waller said the US central bank still has room to cut interest rates amid rising job market weakness. However, rising crude oil prices, lack of progress in the India-US trade negotiations and strong dollar demand from corporates and importers have limited further gains in rupee.
