Rupee strengthens against US dollar on Monday
The Indian rupee strengthened against the US dollar on Monday on tracking weak American currency overseas, while stronger than expected economic growth data fuelled hopes of a further reduction in key interest rate in the RBI's upcoming monetary policy. Data showed that India's Gross Domestic Product grew 7.4% in the January-March quarter from a year earlier, and the central government also managed to meet its fiscal deficit target of 4.8% of GDP for 2024-25. RBI data showed India's forex reserves jumped by $6.992 billion to $692.721 billion during the week ended May 23. Meanwhile, investors are now focusing on the US Federal Reserve Chairman Jerome Powell's speech later today that could guide interest rates policy outlook. However, weak domestic equities, foreign fund outflows and higher crude oil prices followed by ongoing uncertainty over US tariffs, have also weighed on domestic currency. Foreign institutional investors sold equities worth Rs 6,449.74 crore on a net basis on Friday, exchange data showed.
The partially convertible currency is currently trading at 85.42, stronger by 13 paise from its previous close of 85.55 on Friday. The currency touched a high and low of 85.55 and 85.3750 respectively.
