Rupee gains by 7 paise to end at 83.30 against US dollar

Currency market update: The rupee (INR) strengthened by seven paise, or 0.1 per cent, to close at 83.30 against the US dollar (USD) on Friday, December 1, amid record highs on Dalal Street following upbeat domestic economic data and steady crude oil prices. The domestic currency moved within an 11-paisa range of 83.25-83.36 against the greenback during the course of the day before settling at 83.30 for the day. 

Official data released after market hours on Thursday showed the country's gross domestic product (GDP) expanded a better-than-expected 7.6 per cent in the quarter ended September, putting the economy on course to beat an official estimate for the full financial year. Separate data showed the output of eight key sectors jumped 12.1 per cent in October 2023 as against an expansion of 0.7 per cent in the corresponding period a year ago.

Global crude price remained steady on Friday following a two per cent fall the previous day. Benchmark Brent futures were last seen trading up 0.3 per cent at $81.1 a barrel while US WTI futures were up 0.4 per cent at $76.3 per barrel. That took away only a fraction of the sharp fall the previous day after the OPEC+ grouping of top oil producers announced a reduction in output that fell short of market expectations. 

Also Read: India registers better-than-expected GDP growth of 7.6% in Q2; here is what economists say

Strength in the dollar overseas, however, limited the upside in the rupee. The dollar index, which measures the US currency against six peers other than the rupee, was last up 0.1 per cent at 103.6. The index compares the greenback against the euro, the Japanese yen, the pound sterling, the Canadian dollar, the Swedish krona and the Swiss franc.

Meanwhile, a monthly survey said India's manufacturing sector continued with its robust performance in November. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) rose to 56 in November from an eight-month low of 55.5 the previous month.

Domestic equity benchmark Nifty50 registered a record closing high of 20,267.9 after starting the day at an all-time high amid broad-based gains led by financial stocks. 

With inputs from agencies