In early trade on Friday, the rupee gained 8 paise to 83.29 against the US dollar as a result of significant equities purchases by foreign institutional investors and declining crude oil prices.
The general mood was elevated by encouraging signals from the equities markets in the midst of robust domestic macroeconomic data. As the collection of oil-producing nations known as OPEC+ set no new goal to limit output for 2024, the price of crude fell from USD 84 to USD 80 per barrel, according to FX brokers.
The rupee began trading stronger against the dollar at 83.29 on the interbank foreign exchange, and it reached its maximum level of 83.25. It then moved up 8 paise from its previous close to trade at 83.29 against the US dollar.
On Thursday, the rupee ended the day 5 paise weaker than the dollar, at 83.37.
The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was down 0.09 percent at 103.41 in the meantime.
The benchmark for global oil, Brent crude futures, saw a 0.47 percent decrease to USD 80.48 per barrel.
Regarding the domestic equities market, the NSE Nifty gained 87.90 points, or 0.44 percent, to 20,221.05. The BSE Sensex was trading 284.82 points, or 0.43 percent, higher at 67,273.26.
According to exchange data, foreign institutional investors bought shares worth Rs 8,147.85 crore on Thursday, making them net purchasers in the capital market.
India’s gross domestic product (GDP) grew by 7.6% between July and September, above most projections, including the Reserve Bank of India’s (RBI) 6.5% estimate. This continued to establish India as the fastest-growing major economy in the world. The official data was made public on Thursday.
In addition, concurrently disclosed statistics indicated that the output of eight major infrastructure sectors increased by 12.1% in October 2023 compared to a 0.7% growth in the same month the previous year.
According to data issued by the Controller General of Accounts (CGA), the government’s fiscal deficit at the end of October approached 45% of the full-year budget forecast.
