Rupee strengthens against US dollar in early trade on Thursday
The Indian rupee strengthened against the US dollar in early trade on Thursday, tracking foreign fund inflows into the Indian capital market and suspected central bank intervention to maintain abundant banking liquidity near Rs 3 trillion. Foreign institutional Investors purchased equities worth Rs 943.81 crore on Wednesday, exchange data showed. However, some gains were limited by a strong dollar overseas as positive US jobs data combined with hawkish comments from Kansas City Fed President Jeff Schmid reduced chances of an immediate rate cut by the US Federal Reserve. Traders are awaiting CPI data from the US, due on Friday, to take fresh bets on the rupee.
The partially convertible currency is currently trading at 90.61, stronger by 17 paise from its previous close of 90.78 on Wednesday. The currency touched a high and low of 90.63 and 90.40 respectively.
