Updated 08:40 IST, December 22nd 2023
Rupee set to strengthen as safe haven dollar slides to 4-month low
The USD/INR pair encountered consistent buying interest on Thursday, largely attributed to the demand for dollars from oil companies.

The rupee is anticipated to begin the day on a positive note this Friday, following a rebound in US equities that has diminished the demand for the safe haven dollar.
Non-deliverable forwards suggest that the rupee will commence trading around 83.20-83.22 against the US dollar, a slight improvement from the previous session's closing rate of 83.2775.
The recovery in US equities, particularly the 1 per cent climb in the S&P 500, contributed to the dollar index reaching a four-month low of 101.73 during the New York session, a level not seen since mid-August.
Asian currencies gained ranging from 0.1 per cent to 0.4 per cent, accompanying a rise in regional shares.
An initial upward movement in the rupee, mirroring the broader trend in Asia, is anticipated, according to a foreign exchange trader at a bank.
The USD/INR pair, however, is expected to remain well-supported on dips, with challenges in envisioning a significant drop below 83.20, as noted by the trader.
The USD/INR pair encountered consistent buying interest on Thursday, largely attributed to the demand for dollars from oil companies.
The US dollar's performance was further hampered by the third-quarter GDP growth, which fell short of expectations, revised down to 4.9 per cent from the anticipated 5.2 per cent.
Analysts polled by Reuters had predicted an unrevised GDP growth.
Looking ahead, market participants are closely monitoring the core US PCE (Personal Consumption Expenditures) data, slated for later in the day, as it serves as the Federal Reserve's preferred inflation gauge.
Economists surveyed by Reuters anticipate a 0.2 per cent month-on-month increase in the core PCE price index.
The data release occurs against the backdrop of investors factoring in a high probability of the Federal Reserve implementing rate cuts as early as the March meeting, despite resistance from policymakers.
The USD/INR pair may continue to trade within a range for the next few days, with the upcoming US PCE inflation data representing a key focal point, according to Srinivas Puni, Managing Director at QuantArt Market Solutions.
(With Reuters Inputs)
Published 08:34 IST, December 22nd 2023