INR Trades Flat Despite Firm GDP, Dollar Supported Ahead Of Nonfarm Data

Published on Sep 01, 2023 12:16

The Indian Rupee is witnessing tepid moves despite a firm economic growth data as an impressive bounce in the US dollar index has weighed on the currency today. The Indian rupee depreciated by 7 paise to settle at 82.70 against the US dollar in last session and currently quotes flat at 82.69 per US dollar. India`s Gross Domestic Product or GDP grew 7.8 per cent in June quarter on an annual basis, data released by the National Statistical Office (NSO) showed today, marking fastest pace in a year. The S&P Global PMI showed a robust improvement in manufacturing sector conditions across India, as new orders and output increased at the quickest rates in nearly three years during August. Rising from 57.7 in July to 58.6 in August, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers` Index (PMI) indicated the second-best improvement in the health of the sector for nearly three years. While these pointers are largely supportive for the local currency, the spike in the US dollar index above 103 mark is capping INR strength. Dollar index quotes at 103.67, up marginally on the day as market waits for the critical US nonfarm payrolls data due later in the US session.