The Indian rupee opened 8 paise higher against the US dollar on Thursday amid a fall in dollar index after downward revision to second quarter US economic growth. The local currency opened at 82.65 a dollar as compared to previous close of 82.73.
The US dollar index dropped to near 103 and the US Treasury retreated after weaker-than-expected growth and labour market data raised expectations that the US Federal Reserve will not raise interest rates further.
On Wednesday, the rupee ended 2 paise lower at 82.73 a dollar.
Data showed US gross domestic product (GDP) increased at a 2.1% annualized pace in the last quarter, lower than the preliminary estimate of 2.4% growth. Meanwhile, US private payrolls increased by a lesser-than-expected 177,000 jobs last month, Reuters reported.
Investors will eye India’s GDP data due later in the day. India’s economic growth is likely to have accelerated to 7.7%, the fastest annual pace in a year, on robust service sector growth, a Reuters poll found.
Read here: Q1 GDP: India’s Q1 GDP growth likely above 8%; key indicators to watch
Meanwhile, crude oil prices eased. Brent crude futures fell 0.14% to $85.74 a barrel, while US West Texas Intermediate crude (WTI) declined 0.13% to $81.52 a barrel.
On the domestic front, the Indian benchmark equity indices, Sensex and Nifty, were trading higher in the pre-opening session.
On Wednesday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹494.68 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹1,323.24 crore, as per provisional data available on the exchanges.
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Updated: 31 Aug 2023, 09:07 AM IST