Rupee moves up to 39.92/93 against US dollar in early trade
The Indian rupee on Thursday edged higher to 39.92/93 as against the US dollar in narrow movements amid a firm trend in Asian equity markets.
The market witnessed lacklustre activity as investors focused their attention on the release of data on inflation and the industrial production, dealers said.
The local currency resumed trading higher at 39.91/92 a dollar from its previous close of 39.94/95, but later was quoted at 39.92/93 a dollar in late morning deals.
All eyes were on inflation data after the government yesterday admitted that rising food prices would make the task of containing inflation a more difficult exercise and may hurt economic growth and reforms process.
The rising inflation is expected to lead to stringent monetary measures, including a hike in the CRR, by the central bank and in turn, will help rupee surge, they added.
Asian indices were trading in positive territory during early trade while Indian benchmark Sensex gained 95 points.
In overseas markets, the dollar rebounded from its historical low against the Euro on Thursday.