The Indian rupee strengthened by 13 paise, closing at 86.40 against the U.S. dollar, marking its second consecutive day of gains. This follows a 17-paise increase on January 14, when the rupee settled at 86.53.
The recent appreciation is attributed to several key factors:
Weaker U.S. Dollar: The dollar index slipped to 109, boosting the rupee’s performance.
Strong Domestic Markets: Both the S&P/BSE Sensex and NSE Nifty saw notable increases, with the Sensex rising by 224.45 points (0.29%) and Nifty gaining 37.15 points (0.16%).
Falling Crude Oil Prices: Crude oil prices dropped below $80 per barrel, alleviating concerns about India’s import costs and further supporting the rupee.
Despite these gains, the rupee has still depreciated by approximately 1.2% this month due to global economic factors. Analysts are now eyeing U.S. inflation data closely, as it could influence the dollar’s strength and impact the rupee’s trajectory.
This latest surge in the rupee showcases a dynamic mix of domestic strength and global trends, highlighting the resilience of India’s currency in fluctuating markets.
