Rupee hits 16-month high at 65.36
Advertisement
After a consolidation phase, the rupee ended on a new 16-month high at 65.36 against the American currency in the face of dollar unwinding from exporters and banks.
Weak dollar overseas along with abundant capital inflows supplemented further strength to the local currency.
Forex dealers pointed to the recent improvement in sentiment as the impetus for the renewed vigour.
Massive capital inflows on hopes of more reform measures following BJP's strong showing in the recently held state elections spurred therupee 's biggest rally last week since early 2015.
Robust domestic macro fundamentals including 7 per cent GDP growth and a rebound in industrial production along with lesser-than-anticipated hawkish monetary policy stance too reflected in the strong rallying momentum.
The much-anticipated turnaround on the economic front has opened up a barrage of foreign capital fund flows into India.
Foreign investors pumped in USD 3.4 billion in the capital markets so far this month, while country's foreign exchange reserves nudged up USD 98.6 million in the week ended March 10.
Advertisement
Weak dollar overseas along with abundant capital inflows supplemented further strength to the local currency.
Forex dealers pointed to the recent improvement in sentiment as the impetus for the renewed vigour.
Massive capital inflows on hopes of more reform measures following BJP's strong showing in the recently held state elections spurred the
Robust domestic macro fundamentals including 7 per cent GDP growth and a rebound in industrial production along with lesser-than-anticipated hawkish monetary policy stance too reflected in the strong rallying momentum.
Advertisement
Foreign investors pumped in USD 3.4 billion in the capital markets so far this month, while country's foreign exchange reserves nudged up USD 98.6 million in the week ended March 10.
Advertisement
- Stock markets stage strong rebound after 4 days of slump; Sensex rallies 599 pts
- Sustainable Transportation Alternatives
- 10 Foods you should avoid eating when in stress
- 8 Lesser-known places to visit near Nainital
- World Liver Day 2024: 10 Foods that are necessary for a healthy liver