Rupee strengthens against US dollar in early trade on Monday
The Indian rupee strengthened against the US dollar in early trade on Monday driven by reports of the US and Iran reaching an agreement to end the West Asia conflict and open the Strait of Hormuz, while the consequent crash in Brent crude also supported sentiments. Besides, strong domestic equity markets and a weaker American currency also kept the rupee strong. Moreover, investors’ attention is on the US Federal Reserve’s first policy decision under Chair Kevin Warsh, where the central bank is widely expected to keep interest rates unchanged. Meanwhile, Foreign institutional investors offloaded equities worth Rs 1,082.18 crore on a net basis on Friday, exchange data showed. Moreover, the RBI said India's forex reserves dropped $711 million to $681.610 billion during the week ended June 5 due to a sharp decline in foreign currency reserves.
