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Indian rupee strengthened against the US dollar on Monday after global rating agency Moody’s raised India’s growth forecast for 2024 calendar year to 6.8 per cent, from 6.1 per cent estimated earlier, on the back of ‘stronger-than-expected’ economic data of 2023 and fading global economic headwinds. India’s real GDP expanded 8.4 per cent year-over-year in the fourth quarter of calendar year 2023, resulting in a 7.7 per cent growth for full-year 2023. Moreover, a weak American currency against major rivals overseas also supported rupee sentiments. Rupee sentiments improved further on bets that the US Federal Reserve will cut interest rate in June after slowdown in manufacturing activity and a drop in consumer sentiment in the United States. Market participants are now focusing on the Fed chairman's testimony and key US payrolls data to gauge interest rate direction.

The partially convertible currency is currently trading at 82.89, stronger by 2 paise from its previous close of 82.91 on Friday. The currency touched a high and low of 82.9050 and 82.86 respectively.