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Rupee strengthens against US dollar on Thursday

27 Jul 2023 Evaluate
Indian rupee strengthened against the US dollar on Thursday, even after the US Federal Reserve raised interest rates and still left the door open for one more interest rate hike later this year. The US Federal reserve hiked interest rates by 25 basis points to a target range of 5.25-5.5% on the expected lines, bringing US benchmark interest rates to the highest level in 22 years to tackle high inflation. Meanwhile, foreign fund inflows into the capital market supported the domestic currency. Foreign Institutional Investors were net buyers in the capital markets on Wednesday as they purchased shares worth Rs 922.84 crore, exchange data showed. However, weak domestic equities and a surge in crude oil prices have capped gains in rupee.

The partially convertible currency is currently trading at 81.98, stronger by 3 paise from its previous close of 82.01 on Wednesday. The currency touched a high and low of 82.03 and 81.91 respectively.

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