Rupee rallies to 85.98 against US dollar | Business News
The Indian rupee on Friday strengthened past the 86 mark against the US dollar for the first time since January, driven by a surge in foreign investments in the domestic capital and debt markets.
The rupee appreciated by 39 paise, ending at 85.98 against the US dollar, compared to Thursday’s close of 86.37. This marks the rupee’s eighth straight day of gains, registering its best weekly performance since January 2023. The rupee has risen by 1.78 per cent in March so far, following a decline in the dollar index. However, for the current financial year, it has still recorded a 2.8 per cent decline.
“The rupee’s gain was supported by stronger-than-expected trade data and a rise in foreign exchange reserves following the Reserve Bank of India’s (RBI) USD-INR swap intervention. These factors together have helped bolster the local currency,” said Dilip Parmar, Senior Research Analyst, HDFC Securities. RBI’s efforts have paid off, with the rupee emerging as the top performer among Asian currencies so far this month, he said.
Jateen Trivedi, research analyst – commodity and currency, LKP Securities, said FII inflows surged with strong buying figures in recent days. “The Fed’s decision to hold rates steady and its forecast for lower interest rates ahead pulled the dollar down, providing significant support to the rupee. However, major capital market strengthening gives rupee the strong push higher,” he said.
Stock markets remained strong amid bargain hunting and FII inflows. The Sensex gained 0.73 per cent, or 557 points, to 76,905.51 and the NSE Nifty Index rose 0.69 per cent, or 159 points, to 23,350.40 on Friday.
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