The rupee appreciated 19 paise to 87.03 against the US dollar in early trade on Thursday, buoyed by a favourable macroeconomic data that also led to a buying rush in domestic equity markets. According to forex analysts, escalated tariff tensions worldwide continued to fuel the foreign capital outflow, but a weaker American currency index and lower level of crude oil prices added strength to the local unit.
At the interbank foreign exchange, the rupee opened stronger at 87.13 and touched a high of 87.03 against the greenback in early deals, registering a sharp gain of 19 paise from its previous closing level.
The rupee settled 1 paisa lower at 87.22 against the US dollar on Wednesday, a day after logging a recovery of 10 paise on Tuesday as it pared the steep loss of 36 paise in the preceding session (Monday).
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.01 per cent at 103.57.
Brent crude, the global oil benchmark, traded 0.01 per cent lower at USD 70.90 per barrel in futures trade.
Domestic equity market traded positive with the 30-share BSE Sensex rising 23.47 points or 0.03 per cent to 74,053.23 and the broader Nifty gaining 16.95 points, or 0.08 per cent, to 22,487.45.
Foreign institutional investors (FIIs) offloaded equities worth Rs 1,627.61 crore on a net basis on Wednesday, according to exchange data.
The latest government data released on Wednesday showed India's Consumer Price Index (CPI)-based retail inflation slipped to seven-month low of 3.61 per cent in February due to easing prices of vegetables, eggs, and other protein-rich items, creating space for the RBI to go for another cut in interest rate next month.
Another set of data released by the National Statistics Office (NSO) showed that the growth in Index of Industrial Production (IIP), a measure of performance of industries, accelerated to 5 per cent in January 2025, driven by a rebound in manufacturing activity.
On the global front, President Donald Trump has challenged US allies by increasing tariffs on all steel and aluminum imports to 25 per cent as he vowed to take back wealth "stolen" by other countries.
In a quick retaliation, Canada imposed stiff taxes on a range of US products from textiles and water heaters to beef and bourbon.
Canada said it will place 25 per cent reciprocal tariffs on steel products and also raise taxes on a host of items such as tools, computers and servers, display monitors, sports equipment and cast-iron products.
Meanwhile, the European Union (EU) has also said it will raise tariffs on American beef, poultry, bourbon and motorcycles, peanut butter and jeans.
Source Name : Economic Times