Rupee strengthens against US dollar on Monday
Indian rupee strengthened against the US dollar on Monday tracking a steady dollar overseas, while suspected RBI intervention also supported rupee sentiments. Although dollar demand from importers, foreign fund outflows and sluggish domestic equities have limited further strength in domestic currency. Foreign Institutional Investors (FIIs) offloaded Rs 1,323.29 crore in the capital markets on net basis on Friday, exchange data showed. Data shared by the Reserve Bank of India showed India's forex reserves dropped by a further $8.478 billion to $644.391 billion for the week ended December 20. Investors are awaiting signals to Federal Reserve's interest rate outlook for 2025 and US President elect Donald Trump's tariff policies.
The partially convertible currency is currently trading at 85.46, stronger by 2 paise from its previous close of 85.48 on Friday. The currency touched a high and low of 85.53 and 85.45 respectively.
