The Indian rupee rose 3 paise to 83.25 against the US dollar in early trade on Friday, tracking lower greenback on the back of easing US Treasury yields. The local currency opened at 83.24 a dollar as compared to its previous close of 83.28.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% higher at 101.85.
On Thursday, the rupee settled at 83.28 against the dollar.
However, outflow of foreign funds and increased volatility in crude oil prices triggered by geopolitical situation put pressure on the Indian currency, forex traders said.
“Dollar is moving south as fresh economic data from US signaled that economy is feeling the heat of aggressive rate hikes, which may prompt US Fed to start cutting rates in early 2024. Additionally, investors will remain cautious ahead of core-PCE price index to get new insight into whether inflation is continuing to moderate, as it would boost chances of rate cuts in March 2024,” ICICI Direct said in a note.
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It expects USDINR to slip towards 83.10 level as long as its stays below 83.35 level.
Meanwhile, global oil price benchmark Brent crude climbed 0.87% to $80.08 per barrel.
On the domestic front, the Indian stock market indices traded higher following positive cues from global peers.
The 30-share BSE Sensex was trading 267.25 points, or 0.38%, higher at 71,132.35, while the Nifty rose 98.60 points, or 0.46%, to 21,353.65.
Foreign institutional investors (FIIs) were net sellers in the equity market on Thursday as they offloaded shares worth ₹1,636.19 crore, according to exchange data.
(With inputs from PTI)
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