Rupee's Subtle Rise Amid Equity Market Surge

The rupee gains slightly against the US dollar, supported by strong domestic equity markets and a weakened dollar. However, global oil price hikes and foreign fund outflows limit further gain. The RBI's unchanged policy rates maintain the rupee's steady movement, amid a declining dollar index and rising Brent crude prices.

The rupee experienced a minor uptick of 1 paisa, reaching 83.95 against the US dollar in early trading on Thursday. This rise comes on the back of a robust domestic equity market and a weakening dollar compared to major global currencies.

Despite this positive movement, the upward trend of the rupee was constrained by increasing global oil prices and the heavy outflow of foreign funds. Market analysts point to these factors as key in capping the currency's recovery.

On the policy front, the Reserve Bank of India held its policy rates steady for the tenth time, maintaining a neutral stance that might herald future rate cuts. This decision contributed to the rupee's stable trajectory amidst shifting market dynamics.

(With inputs from agencies.)