Rupee opens 25 paise stronger at 82.47 against US dollar
The Indian rupee opened higher against the US dollar on Thursday supported by strong domestic GDP growth in FY23 and wagers of a US Federal Reserve pause next week and the much higher-than-expected local GDP print. The local currency opened 25 paise higher at 82.47 a dollar against Wednesday’s close of 82.72.
India’s economic growth accelerated to 6.1% in the January-March quarter, data out on Wednesday showed, boosting sentiment.
The US dollar retreated from a two-week top against its major peers on Thursday as investors cut bets that the US Federal Reserve will raise interest rates this month. The US dollar index rose 0.06% to 104.21.
Meanwhile, the US House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling.
Read here: Debt ceiling deal: US House passes the debt ceiling bill
Meanwhile, expectations rose that US Federal Reserve will not raise interest rates next week after Fed Governor and vice chair nominee Philip Jefferson said “skipping a rate hike” at a coming meeting would allow the Fed to see more data before making decisions on additional policy firming, Reuters reported.
Crude oil price rose on the US debt deal and as Chinese manufacturing data beat expectations.
On the domestic front, the Indian equity benchmark indices Sensex and Nifty were trading flat with a positive bias in the early trade.
On Wednesday, the Foreign Institutional Investors (FII) bought Indian shares worth ₹3,405.90 crore, while the Domestic Institutional Investors (DII) sold shares worth ₹2,528.52 crore, as per data available on exchanges.
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Updated: 01 Jun 2023, 09:18 AM IST
