Rupee strengthens against US dollar on Thursday
The Indian rupee strengthened against the US dollar on Thursday, tracking firm domestic equities after the US Federal Reserve kept the rates unchanged in the 4.25%-4.50% range as expected and indicated two rate cuts this year. Some support came as RBI March Bulletin said sound fiscal policies, a well-calibrated monetary framework, and digital transformation initiatives are expected to provide a strong foundation for long-term sustainable economic growth. It also said that macroeconomic fundamentals remain strong, and economic growth is poised to sustain momentum driven by robust domestic demand, steady investment activity, and ongoing policy-driven infrastructure development along with a pick-up in government spending. However, firm American currency, unabated foreign fund outflows and uncertainty surrounding Trump's tariff stance have limited further gains in rupee. Foreign institutional investors offloaded equities worth Rs 1,096.50 crore on a net basis on Wednesday, exchange data showed.
The partially convertible currency is currently trading at 86.31, stronger by 6 paise from its previous close of 86.37 on Wednesday. The currency touched a high and low of 86.4125 and 86.20 respectively.
