In response to encouraging macroeconomic statistics, the rupee rose by 33 paise to settle at 82.42 (provisional) against the US dollar on Thursday. Against the US dollar, the local unit traded in the interbank foreign exchange market with an opening price of 82.54 and ended the day at 82.42 (provisional), up 33 paise from the previous day due to consistent foreign capital inflows.
The dollar index, which measures the value of the US dollar against a basket of six other currencies, decreased 0.20 percent to 104.12. The price of a barrel of Brent crude, the benchmark for all other crude oils, increased by 0.17 percent to 72.72 USD.
“In the face of excellent economic indicators and foreign money inflows, the Indian rupee rose. Following dollar inflows and reduced commodity prices, it has recorded its largest single-day increase in nearly two months,” according to HDFC Securities Dilip Parmar. The most since November, USD 4.5 billion of local stocks were purchased by foreign institutions in May.
Despite the spot USDINR’s Thursday decline, technical indicators point to a continuation of the bullish trend, according to Parmar, who also added that traders will be keeping a watch on Friday’s US payrolls data in advance of the Federal Reserve’s June meeting.
In May, industrial activity in India increased even further and reached a 31-month high, helped by a greater increase in new orders and good market conditions. The Center’s fiscal deficit decreased from 6.71 percent of the GDP in FY22 to 6.4% of the GDP in 2022–23.
Additionally, according to official data made public on Wednesday, India’s economy expanded by 6.1% in the March quarter of 2022–2023; this increased the annual growth rate to 7.2% due to improved performance in the agriculture, manufacturing, mining, and construction sectors.
