Rupee gains ground against Dollar, eyes US inflation data

In early trade today, the Indian rupee showcased strength against the US dollar, marking an appreciation of 8 paise to stand at 82.99. The initial surge comes amidst a weakening trend observed in the American currency across global markets.

At the interbank foreign exchange, the rupee commenced at 83.01, subsequently touching 82.99 against the dollar, a notable climb from its previous closure at 83.07 on Friday.

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Investors are now closely monitoring the upcoming US inflation data scheduled for release on Tuesday, seeking insights for potential market movements.

In parallel, the dollar index, indicating the strength of the greenback against a basket of six major currencies, witnessed a marginal decline of 0.07 percent, settling at 104.03.

Meanwhile, Brent crude futures, the global oil benchmark, experienced a 0.51 percent decrease, reaching USD 81.77 per barrel.

On the domestic front, the 30-share BSE Sensex saw a dip of 140.34 points or 0.20 percent, standing at 71,454.25, while the broader NSE Nifty observed a decline of 39.35 points or 0.18 percent, closing at 21,743.15.

Foreign Institutional Investors (FIIs) maintained a positive stance in the capital markets on Friday, as per exchange data, with net purchases of shares amounting to Rs 141.95 crore.

Furthermore, India’s forex reserves witnessed a significant surge, increasing by USD 5.736 billion to USD 622.469 billion for the week ended February 2, as reported by the Reserve Bank. This surge follows a previous week’s rise of USD 591 million, bringing the overall reserves to USD 616.733 billion.