In the early trading session on Monday, the Indian rupee exhibited strength, appreciating by 4 paise to reach 82.87 against the US dollar. This upward movement was attributed to the weaker US dollar against major global currencies and an influx of foreign funds into the domestic capital markets. Despite facing pressure from rising crude oil prices, the rupee found support from positive sentiments in the equity markets.
Forex traders noted that the local unit, starting at 82.86 at the interbank foreign exchange, gained 4 paise from its previous close, reaching 82.87 against the greenback. While the rupee had concluded Friday’s session at 82.91, the early week gains reflected favourable market conditions.
The global oil benchmark, Brent crude futures, experienced a marginal uptick of 0.10 percent, reaching $83.63 per barrel. Concurrently, in the domestic equity market, the 30-share BSE Sensex displayed a modest gain of 68.88 points or 0.09 percent, standing at 73,875.03 points. The broader NSE Nifty also posted a positive move, climbing by 6.065.65 points or 0.09 percent to reach 22,399.40 points.
India’s foreign exchange reserves witnessed a substantial increase, rising by $2.975 billion to reach $619.072 billion for the week concluding on February 23. The Reserve Bank of India reported this reserve surge, indicating robust economic indicators.
A monthly survey unveiled on Friday revealed that India’s manufacturing sector experienced a noteworthy growth spurt in February. Marking a five-month high, the sector saw an intensified uptick in factory production and sales. This surge was supported by strong demand, both domestic and international.
Despite facing challenges from volatile crude oil prices, the rupee’s resilience against the US dollar showcases the multifaceted dynamics influencing the Indian financial landscape. The positive economic indicators, including rising forex reserves and manufacturing sector growth, contribute to an optimistic outlook for India’s economic trajectory in the coming weeks.
Check here for the latest updates in Hindi!