Rupee strengthens by 50 paise against dollar as CPI inflation eases
14/09/2018 12:36

The Indian rupee was trading strongly against the US dollar on Friday amid sustained selling of greenback by exporters and banks, while decline in retail inflation also boosted local currency movement. Consumer price inflation slows to a 10-month low of 3.69 per cent in August, below the RBI’s 4% medium-term target, raising hopes that the central bank will keep interest rates on hold in its next policy meeting on October 5, 2018.

The Indian currency was also strengthened against the greenback amid reports that Prime Minister Modi will be holding a meeting over the weekend to review the economic situation and the rupee condition as well.

Early today, the rupee opened higher at 71.7925 from the previous closing level at 72.2625 per dollar at the inter-bank foreign exchange here. The local currency was currently trading higher by 50 paise at 71.76, while it touched high and low of 71.6625 and 71.9575 during the day’s trade (at 12:30 hours).

Adding to it, a positive trend across the domestic equity market also boosted the rupee’s upward movement. The 30-share benchmark index was trading at 37900.16, up by 182.2 points or by 0.48 per cent, and the NSE Nifty was at 11454.7, up by 84.8 points or by 0.75 per cent.