Indian Rupee Holds Well Under 83 Per US Dollar, Improving Economic Data Supports

Published on Sep 13, 2023 12:38

The Indian rupee stayed supported amid choppy trades after breaking under 83 per dollar mark. The currency has held up onto the recent rebound from a near record low against the US dollar amid positive equities and a dip in the US dollar index from six month high. The domestic equity NIFTY index has hit record high this week and is lingering around the key 20000 mark. The rupee appreciated 8 paise to close at 82.95 against the US dollar yesterday and moved up further today to hit a high of 82.89 per US dollar. The local currency was also supported due to improving economic data. India released the Quick Estimates of Index of Industrial Production (IIP) today. The overall industrial output spiked by 5.7% in July, up from 3.7% in June 2023. The manufacturing sector output rose by 4.6% in July this year. The mining output for July 2023 rose to 10.7%. The electricity output gained 8% on year in July. India`s retail inflation as measured by All India Consumer Price Index (CPI) moderated to 6.83% in August 2023 compared to same month last year. Inflation had hit a multi month high of 7.4% in July.