Rupee rises to 2-month high of 83.1 vs $

The Indian rupee closed at 83.10 in the foreign exchange market on Friday, reaching a two-month high and increasing by 14 paise compared to its previous close of 83.24.

This week, the rupee experienced a gain of almost 0.3%, marking its largest weekly increase in over five months. Dealers attribute this rise to the influx of substantial amounts of dollars in the foreign exchange market. Additionally, market sentiment improved following the recent surge in equity indices, which was fueled by the Reserve Bank of India’s announcement of a record dividend of Rs 2.1 lakh crore to the government. The delayed reaction to this news was due to the closure of foreign exchange markets on Thursday for Buddha Purnima.

“Despite the recent upward trend of the dollar index, the rupee has displayed resilience due to significant economic developments in India,” commented Jateen Trivedi, a research analyst at LKP Securities.