The rupee gained 38 paise to reach 83.04 against the US dollar in early trade on Monday. This is its highest level in three months. Forex traders said the weak US currency and inflow of foreign capital into domestic stock markets also supported the local currency. The rupee opened at 83.09 per dollar in the interbank foreign exchange market.
After early deals in the currency market, it reached 83.04 per dollar, which shows an increase of 38 paise compared to the previous closing price. On March 18 this year, the rupee had crossed the level of 83.00. The local currency recorded its highest one-day rise since April 2023, when the rupee had appreciated by 42 paise.
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The rupee had closed at 83.42 against the US dollar on Friday. Meanwhile, the dollar index, which gauges the strength of the US dollar against six major currencies, stood at 104.56 with a gain of 0.06 per cent.
Brent crude futures, the global oil benchmark, were trading 0.06 per cent lower at US$81.06 per barrel. According to stock market data, foreign institutional investors (FIIs) remained buyers in the capital market on Friday and bought shares worth a net Rs 1,613.24 crore. Domestic markets Sensex and Nifty reached their all-time high with a gain of nearly four percent in early trade on Monday amid expectations of victory of the Bharatiya Janata Party (BJP)-led NDA government in the Lok Sabha elections.
In many ‘exit polls’, the BJP-led National Democratic Alliance (NDA) has been predicted to get an overwhelming majority in the Lok Sabha elections and Prime Minister Narendra Modi will become the Prime Minister for the third consecutive time. The results of the Lok Sabha elections will be declared on June 4.
