The rupee strengthened by 8 paise to 83.89 against the US dollar in early trading.

In early trading on Friday, the Indian rupee appreciated by 8 paise to 83.89 against the US dollar, benefiting from positive domestic equities and a slight decline in the US dollar index. Forex traders noted that following the Reserve Bank of India's monetary policy announcement, attention is now on upcoming economic data releases, including the US and India’s CPI, WPI, IIP, and India's trade data, all due next week. The Jackson Hole Symposium, scheduled for the following week, is also on traders' radar.

The rupee began trading at 83.95 against the US dollar at the interbank foreign exchange market and then strengthened to 83.89, an increase of 8 paise from its previous close. On Thursday, the rupee had remained within a narrow range, ending the day 2 paise lower at 83.97 against the US dollar.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, stated that the Reserve Bank of India has maintained the rupee at 83.96 this week, and the currency is expected to fluctuate within a narrow range of 83.90 to 84.00 for the day, following the RBI's decision to keep key benchmark rates unchanged.

Meanwhile, the dollar index, which measures the US dollar's strength against a basket of six major currencies, was slightly down by 0.03% at 103.17.