Rupee Strengthens Amid Dollar Weakness

The Indian rupee appreciated by 10 paise to 83.53 against the US dollar, driven by weaker dollar sentiment due to a dip in US consumer confidence. The rupee had depreciated by 9 paise on Tuesday. Forex traders noted the rupee's resilience within a controlled range, attributed to the Reserve Bank of India's active intervention.

The Indian rupee appreciated by 10 paise to 83.53 against the US dollar in early trade on Wednesday, spurred by overall dollar weakness in the global market.

Forex traders pointed out that the US dollar weakened against major currencies following a significant drop in US consumer confidence, which fell to 98.7 from 105.6 in August—its steepest decline in three years.

Initially opening at 83.59 at the interbank foreign exchange market, the rupee touched 83.54, marking a rise of 10 paise from its previous close. On Tuesday, the rupee had depreciated by 9 paise, closing at 83.63 against the dollar.

"The Indian rupee, which depreciated on Tuesday, opened stronger due to overall dollar weakness against Asian and European currencies," stated Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

The dollar index, which measures the greenback's strength against six major currencies, was down 0.21 percent at 100.25 points. Meanwhile, Brent crude, the international benchmark, fell by 0.28 percent to USD 74.96 per barrel in futures trading.

Forex traders indicated that the rupee remains steady within a well-defined range, thanks to active intervention by the Reserve Bank of India (RBI).

On the domestic equity market front, the 30-share BSE Sensex rose by 33.63 points or 0.04 percent to 84,947.67, while the Nifty inched up by 6.35 points or 0.02 percent to 25,946.75 points. Foreign Institutional Investors (FIIs) were net sellers on Tuesday, offloading shares worth Rs 2,784.14 crore, according to exchange data.

In macroeconomic news, the Asian Development Bank (ADB) maintained India's current fiscal growth forecast at 7 percent and projected that the economy will accelerate in the coming quarters, driven by improved farm output and increased government spending. The ADB's September Asian Development Outlook (ADO) update also highlighted that service exports are expected to be higher, though merchandise export growth will remain subdued through the next fiscal year.

(With inputs from agencies.)