Dollar Vs Rupee: The trend of strengthening of Indian rupee continues. Today again the rupee made a big jump of 40 paise.
Let us tell you that due to the weakness of the US dollar and the strength of the domestic stock markets, the rupee strengthened by 40 paise to 85.05 per dollar in early trade on Monday. According to foreign exchange traders, the rupee also got support from increased foreign investment and the Reserve Bank of India’s (RBI) announcement of giving a record dividend to the government for the financial year 2024-25.
The rupee opened at 85.02 per dollar at the interbank foreign exchange market and strengthened to 84.98. Later it stabilized at 85.05 per dollar, showing a gain of 40 paise over the previous session. On Friday, the rupee closed at 85.45 per dollar.
Why is the rupee strengthening?
- India became the fourth largest economy
- fall in crude oil prices
- Better than normal monsoon expected
- Success of Operation Sindoor and strong defence system
- Inflation under control and GDP growth expected to pick up
- Increase in foreign investment
Dollar index falls
Meanwhile, the dollar index, which shows the position of the US dollar against six major global currencies, fell 0.34% to 98.67. Domestic stock markets also saw a rise, where the BSE Sensex rose 630.68 points to 82,351.76 and the Nifty rose 187 points to 25,040.15. The price of crude oil also rose slightly in the international market. Brent crude was trading at $ 64.99 per barrel with a gain of 0.32%. Foreign institutional investors (FIIs) were also active in the market. On Friday, FIIs sold shares worth Rs 1,794.59 crore net, due to which the market remained volatile.
RBI gave record dividend to the government
It is worth noting that the RBI has announced a record dividend of Rs 2.69 lakh crore to the Government of India for the financial year 2024-25. According to the latest weekly data released by the Reserve Bank of India on Friday, India’s foreign exchange reserves declined by $ 4.888 billion to $ 685.729 billion in the week ended May 16.
