Rupee strengthens against US dollar on Monday
The Indian rupee strengthened against the US dollar on Monday tracking firm domestic equity markets and weak American currency overseas after US President Donald Trump extended a deadline on aggressive European tariffs until July 9 after a call with European Commission President Ursula von der Leyen. Besides, market participants are now focusing on the release of industrial and manufacturing production data for April as well as the Q1 GDP growth numbers, scheduled this week, for further insights into the country's economic activity. Moreover, foreign fund inflows and the RBI's announcement of giving a record-breaking Rs 2.69 lakh crore dividend to the central government for FY25, have also supported rupee sentiments. Foreign institutional investors purchased equities worth Rs 1,794.59 crore on a net basis on Friday, exchange data showed. But, the RBI's latest data showed India's forex reserves dipped $4.888 billion to $685.729 billion for the week ended May 16.
The partially convertible currency is currently trading at 84.86, stronger by 59 paise from its previous close of 85.45 on Friday. The currency touched a high and low of 85.1375 and 84.8025 respectively.
