Sharp Appreciation: On Friday, the Indian rupee appreciated sharply, reaching a two-month high against the US dollar.
- Intraday High: The local currency rose to an intraday high of 83.03 per dollar, strengthening by 25 paise or 0.30%.
- End of Session: The rupee settled at 83.10 per dollar, up 18 paise or 0.22%, marking its strongest level since March 19.
- Previous Day: On Wednesday, the rupee had settled at 83.28 against the dollar.
- Market Closure: Foreign exchange and bond markets were closed on Thursday for Buddha Purnima.
Factors Driving the Rupee’s Strength
- Economic Developments: Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, noted the rupee’s resilience due to significant economic developments in India.
- Foreign Inflows: Substantial fund inflows into the capital markets contributed to the rupee’s strength.
- Trading Range: Trivedi mentioned an expected trading range for the rupee between 82.90 and 83.35.
- Dollar Sales: A dealer at a state-owned bank observed private banks actively selling dollars during the day.
RBI Intervention:
- Market Intervention: The Reserve Bank of India intervened in the foreign exchange market by purchasing dollars.
- Curbing Volatility: The RBI aims to curb market volatility, especially with upcoming election results.
Bond Market Movements
- Slight Uptick in Yields: Government bond yields saw a slight increase as traders wound up positions ahead of the weekend.
- 10-Year Bond Yield: The yield on the benchmark 10-year government bond settled at 7.00%, up from 6.99% on Wednesday.
Positive Sentiment: The Indian rupee’s performance reflects positive sentiment driven by foreign investments and robust economic indicators.
RBI’s Role: The RBI’s intervention underscores its efforts to manage market volatility.
Future Trends: Investors and market participants will closely monitor currency and bond market trends in the coming weeks amid both domestic and global developments.
भारत की आर्थिक वृद्धि के कारण मांग में वृद्धि जारी रहेगी ,