Indian rupee appreciates by 2 paise against US dollar in early trade

Asian shares were flat on Thursday, with markets holding onto their gains as confidence grows that interest rates globally will head lower next year

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Published: Thu 23 Nov 2023, 9:17 AM

The rupee edged up by 2 paise to 83.30 (Dh22.69) against the US dollar in opening trade on Thursday amid a correction in crude oil prices and gains in local equities.

The US currency also weakened against its major global rivals which supported the rupee sentiment despite FII outflows, forex dealers said.

At the interbank foreign exchange market, the local unit opened at 83.30 against the US dollar, showing a rise of 2 paise over the last close. The unit had closed at 83.32 on Wednesday.

Asian markets

Asian shares were flat on Thursday with markets holding onto their gains for the week as confidence grows that interest rates globally will head lower next year, while oil prices fell on the prospects for smaller-than-expected output cuts by OPEC+.

Investors are also looking to Chinese policymakers for clues on possible support for the long-suffering property market, in line with broader growth targets they are hammering out.

MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.11% in thin trading, with Japan and the United States on holiday.

The U.S. market, which has priced out the chances of another rate hike in December, shrugged off strong weekly jobs data Wednesday night that may nevertheless reduce the prospects for quicker-than-expected rate cuts by the Federal Reserve, said Redmond Wong, Greater China market strategist at Saxo Markets.

Japanese markets are closed for a national holiday on Thursday, after the Nikkei 225 edged up 0.3% the day before and approached a three-decade high.

Trading worldwide was expected to be quiet due to the Thanksgiving holiday in the U.S.

China's benchmark share index fell 0.3% on Thursday, with the real estate sub-index down 0.8%. A large wealth manager with heavy exposure to the property market disclosed that it faces insolvency with relevant liabilities of up to $64 billion. Chinese government advisers will recommend to an annual policymakers' meeting that economic growth targets for next year be set at 4.5% to 5.5%, Reuters reported on Wednesday.

Hong Kong's Hang Seng index lost 0.7% while Australia stocks fell 0.4%.

Markets have generally been buoyant this month, with stocks rallying on expectations of a more benign interest rate backdrop.

Inputs from wires

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