Rupee Gains Ground Against the Dollar

The Indian rupee appreciated by 27 paise to close at 84.30 against the US dollar on Monday, buoyed by a sharp fall in crude oil prices and strong domestic equity performance. Forex traders noted that sustained foreign investor inflows also supported the local currency, though global uncertainties limited the upside.

Market Movements and Analyst Insights

At the interbank foreign exchange market, the rupee opened at 84.45 and traded between an intra-day high of 84.10 and a low of 84.47. It finally closed at 84.30, up 27 paise from its previous close. Analysts attribute this strength to sustained FII inflows and a significant decline in crude oil prices, which have eased India’s import bill and supported macro fundamentals.

Global Factors Influencing the Rupee

The dollar index was trading 0.38% lower at 99.64, while Brent crude futures declined 1.26% to USD 60.52 per barrel. Domestic equities also saw gains, with the BSE Sensex rising 294.85 points and the NSE Nifty gaining 114.45 points. Foreign institutional investors were net buyers, purchasing equities worth Rs 2,769.81 crore on Friday.

Forex Reserves on the Rise

India’s forex reserves increased by USD 1.983 billion to USD 688.129 billion for the week ended April 25, marking the eighth consecutive weekly increase. This positive trend reflects the country's strengthening economic position amidst global market fluctuations.