INR falls on broad dollar strength overseas

The Indian rupee depreciated 23 paise to close at 88.71 (provisional) against the US dollar on Thursday, on broad strength of the American currency and fading odds of a rate cut by the US Federal Reserve. The dollar index is hovering around a six month high on Thursday as investors assess the Federal Reserve monetary policy outlook ahead of a key jobs report. Investors eye the release of the US September Nonfarm Payrolls (NFP) later on Thursday, to gain fresh impetus on Fed policy outlook. Meanwhile, FOMC Minutes for the October 28-29 meeting indicated that Fed officials are divided and cautious about the path forward for interest rates. Meanwhile, Indian shares closed higher on Thursday. The benchmark BSE Sensex surged 446.21 points, or 0.52 percent, to 85,632.68 while the broader NSE Nifty index ended up 139.50 points, or 0.54 percent, at 26,192.15. At the interbank foreign exchange market, the rupee opened at 88.63, then lost ground, touching an intra-day low of 88.74. It also hit an intra-day high of 88.62 against the US dollar.

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