India's Rupee Edges Up Slightly Ahead of Interim Budget

The rupee gained 9 paise to reach 82.95 against the US dollar in early trade on Thursday as investors exercised caution prior to the interim Budget. Forex traders noted the rupee's trading within a narrow range, influenced by the strength of the American currency in the global market and subdued activity in domestic equities.

At the interbank foreign exchange, the rupee commenced trading at 83.02 against the dollar, reaching a peak of 82.95, marking a 9 paise increase over its previous close.

Finance Minister Nirmala Sitharaman is set to present her sixth consecutive Budget ahead of the Parliamentary elections, aligning with the record of former Prime Minister Morarji Desai.

In her pre-election Budget—technically termed a vote on account and commonly referred to as an interim Budget—Sitharaman will seek Parliament's approval for an advance grant to cover the central government's essential expenditure for the initial four months of the forthcoming fiscal year beginning in April. Subsequently, a newly elected government following the April/May general elections will unveil the full Budget, anticipated around July.

The final Budget of Prime Minister Narendra Modi's government before the general elections is widely anticipated to encompass a blend of economic measures and initiatives targeted at significant voter segments such as farmers and women.