Rupee rises 9 paise to 82.61 against US dollar in early trade

The rupee appreciated by 9 paise to 82.61 against the US dollar in early trade on Friday, September 1, 2023 tracking cues from positive domestic equity markets on the back of robust macroeconomic data.

However, outflow of foreign funds and crude prices hovering around USD 87 per barrel weighed on the domestic unit, according to forex traders.

As per the government data released on Thursday, India recorded GDP growth of 7.8 per cent during the April-June period of 2023-24, the highest in the past four quarters, retaining its position as the world’s fastest-growing major economy.

At the interbank foreign exchange, the domestic unit opened strong at 82.58, then touched the lowest level of 82.63 against the greenback.

Later, the rupee was trading at 82.61 against the dollar, registering a gain of 9 paise from its previous close.

On Thursday, the rupee closed at 82.70 against the dollar.

Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said: “Rupee rose marginally after data showed growth accelerated at 7.8 per cent in April-June quarter of FY24. However, the growth in the manufacturing sector fell to 4.7 per cent in the first quarter of the current fiscal as against 6.1 per cent in the year-ago period.

“Yesterday, the dollar rose marginally after core PCE index rose 4.2 per cent, a slightly stronger pace than the 4.1 per cent increase recorded in June. Today, volatility is expected to low ahead of the important non-farm payrolls and ISM manufacturing PMI number that will be released from the US. Lower-than-expected data could keep the dollar weighed down against its major crosses. We expect the USDINR (Spot) to trade sideways with a negative bias and quote in the range of 82.30 and 82.80,” Mr. Somaiya added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03 per cent to 103.65.

Brent crude futures, the global oil benchmark, was trading 0.23 per cent higher at USD 87.03 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 71.05 points or 0.11 per cent higher at 64,902.46 points. The broader NSE Nifty advanced 36.90 points or 0.19 per cent to 19,290.70 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth ₹2,973.10 crore, according to exchange data.