Rupee Gains Amidst Strong Domestic Equity and Favorable Global Cues

The rupee appreciated by 13 paise to 83.40 against the US dollar, buoyed by firm domestic equity markets, a weak American currency overseas, and lower crude prices. However, foreign fund outflows limited its rise. The RBI kept the key policy rate unchanged, signaling ongoing vigilance on inflation.

PTI | Mumbai | Updated: 07-06-2024 21:17 IST | Created: 07-06-2024 21:17 IST
Rupee Gains Amidst Strong Domestic Equity and Favorable Global Cues
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On Friday, the rupee appreciated by 13 paise, closing at 83.40 against the US dollar. This uptick was driven by robust domestic equity markets, a softening US dollar against major global currencies, and lower crude oil prices overseas.

Despite the rupee's upward movement, foreign fund outflows conditioned its rise. In early trade at the interbank foreign exchange market, the rupee hovered between 83.37 and 83.48 before settling at 83.40.

Jateen Trivedi from LKP Securities noted, 'The rupee's strength is credited to ongoing capital market gains and investor confidence in the NDA 3.0 government's economic stability.' The RBI decided to maintain the policy rate at 6.5%, marking the eighth consecutive time it has remained unchanged, emphasizing its focus on curbing inflation.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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