The rupee ended stronger against the US dollar on Thursday as a decline in inflation and rise in industrial production boosted investors' confidence.
The domestic currency ended 21 paise higher at 87 against the greenback, according to Bloomberg. It ended at 87.21 a dollar on Wednesday.
The Indian unit opened eight paise stronger at 87.13 as the US dollar index gave up gains in the Asia session. Intraday, the Indian unit scaled a high of 86.97 against the US dollar, marking the highest level since Friday.
The DXY declined early morning as investors ignored benign inflation data from the US and worried about future probability of inflation increase due to tariff policies. The index was trading flat at 103.65 as of 3:29 p.m., according to Bloomberg data.
Early in the session, trade was impacted by technical glitch in the Refinitiv's FX platform, which was solved later, Informist reported, citing forex traders.
The rupee rose on a wave of strong economic fundamentals and surging investor confidence, according to Amit Pabari, managing director of CR Forex Advisors Ltd. "A sharper-than-expected drop in inflation to 3.61%, paired with a stellar 5% rise in industrial production, underscored India's economic resilience."
"The inflation and the IIP both came better than expected, allowing the RBI to (possibly) cut rates in the April meeting, the first in the new financial year. With no cues, the market is expected to remain range bound," Anil Bhansali, executive director at Finrex Treasury Advisors LLP, said.
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