The Indian currency championed positivity on Thursday morning, helped by the recovery in equities, as the dollar eased and overseas crude oil prices receded.
The latest US data, which showed higher-than-estimated inflation, added to this movement, as the rupee gained 14 paise to 86.81 against the American currency.
With no immediate hope of monetary easing by the US Federal Reserve, the dollar index traded 0.22 per cent lower at 107.59 at dawn. The US dollar index gauges the currency's strength against a set of six currencies.
Back in the NSE and the BSE, benchmark indices gained at least 0.2 per cent as recoveries kicked in after two consecutive days of heavy market slides.
In morning trade, the Sensex gained around 168 points to reach 76,339 and the Nifty appreciated by around 45 points to cross the 23,090 level.
The local currency and the markets were constantly under pressure due to withdrawals by foreign institutional investors (FIIs) but signs point to easing after the release of the inflation data by the Reserve Bank of India, which showed CPI inflation slowing. Analysts also expect a repo rate cut by the Indian central bank in April, following the data.
#WATCH | Noida, UP | On RBI Governor Sanjay Malhotra announcing policy rate cut by 25 basis points, Senior Economist Vijay Sardana says, "Compared to other countries, interest rates are high in India because of inflation. Also, to bring investment in our country and increase… pic.twitter.com/k61PvGhPrA
— ANI (@ANI) February 7, 2025
