Ketaan Ram Kataria
Patna: The Indian rupee strengthened by 27 paise to close at 84.96 against the US dollar on Monday, buoyed by strong foreign fund inflows and a sharp rally in domestic equity markets. The move marked the rupee’s highest closing level in over two weeks.
Forex traders attributed the rupee’s appreciation to heavy buying in Indian equities by foreign portfolio investors (FPIs). Benchmark indices surged over 1.2% during the day, led by a strong performance from Reliance Industries, which jumped more than 5% after reporting better-than-expected quarterly earnings.
Market sentiment was further bolstered by easing geopolitical tensions and unwinding of long USD/INR positions. Analysts noted that the rupee gained 0.6% over the month, supported by consistent equity inflows.
However, technical resistance was observed around the 84.97–84.98 zone, close to the 200-day moving average, where state-run banks were seen purchasing dollars, capping further gains.
Meanwhile, the US dollar index slipped 0.1% to 99.6 amid investor caution ahead of key US economic data, including PCE inflation and payroll numbers. Analysts say weaker-than-expected data could weigh further on the dollar.
The rupee’s rise signals improving investor confidence in India’s macroeconomic outlook.
