Anna 
As the dollar index hovers near its lowest level since August, the Indian rupee experienced a slight uptick on Friday, reaching 83.25 as of 10:50 a.m. IST, a marginal increase from the previous session’s close at 83.2775. The local currency traded within a narrow range of 83.2375 to 83.26 during early trading.
Most Asian currencies exhibited gains ranging from 0.1% to 0.4%, contributing to the positive sentiment in the region.
Despite these gains, the rupee’s upward movement was curtailed by heightened dollar demand from importers, including local oil companies, reported a foreign exchange trader at a state-run bank. The trader anticipated limited price action for the rupee within the 83.20-83.30 range.
The dollar index, which remained steady at 101.8 after falling to 101.73 overnight, continued to linger near its lowest level since August. The global increase in risk appetite, supporting equities worldwide, contributed to the dollar’s weakened position.
Indian equity indexes reflected the positive global sentiment, with gains mirroring Asian and U.S. peers. The S&P500 Index registered a one-percent increase on Thursday.
The dollar’s decline was further influenced by slightly weaker-than-expected U.S. GDP growth for the third quarter, coming in at 4.9% compared to economists’ expectations of 5.2%, according to a Reuters poll.
Dilip Parmar, a foreign exchange research analyst at HDFC Securities, highlighted that both technical and global factors support some appreciation of the rupee. While the rupee’s movement may remain subdued on Friday, Parmar suggested the potential for gains in the final trading sessions of the year.
Investors are keenly awaiting U.S. Personal Consumption Expenditure (PCE) inflation data, the Federal Reserve’s preferred inflation gauge, scheduled for later on Friday. According to a Reuters poll, the data is anticipated to reveal that month-on-month core PCE inflation remained unchanged at 0.2% in November.
