In the early trading session on Thursday, the Indian rupee saw a modest increase of 2 paise, reaching 83.30 (Dh22.69) against the US dollar. This uptick was attributed to a correction in crude oil prices and positive movements in the local stock market.
Despite Foreign Institutional Investor (FII) outflows, the US dollar weakened against major global currencies, contributing to a favorable sentiment for the Indian rupee, as noted by forex dealers.
On the interbank foreign exchange market, the rupee opened at 83.30 against the US dollar, reflecting a 2 paise gain from the previous close of 83.32 on Wednesday.
Meanwhile, in Asian markets, shares remained relatively stable, holding onto weekly gains amid growing confidence in a global trend of lower interest rates in the coming year. Oil prices declined due to expectations of smaller-than-anticipated output cuts by OPEC+.
Investors were closely watching Chinese policymakers for indications of potential support for the struggling property market, aligned with broader growth targets being discussed.
The MSCI’s broadest index of Asia-Pacific shares outside Japan experienced a slight dip of 0.11%, with Japan and the United States observing holidays.
In the U.S. market, which had discounted the possibility of a December rate hike, strong weekly jobs data on Wednesday had little impact, with expectations of a Federal Reserve rate cut remaining.
Japanese markets were closed for a national holiday, following a 0.3% increase in the Nikkei 225 the previous day.
Global trading activity was expected to be subdued due to the Thanksgiving holiday in the U.S.
China’s benchmark share index recorded a 0.3% decline, particularly affecting the real estate sub-index, which was down 0.8%. Concerns were raised as a major wealth manager with significant exposure to the property market revealed potential insolvency with liabilities reaching up to $64 billion.
Hong Kong’s Hang Seng index and Australia’s stocks experienced losses of 0.7% and 0.4%, respectively.
Despite these regional developments, markets had generally shown optimism throughout the month, with stocks rallying on expectations of a more accommodative interest rate environment.
