Rupee surged by 57 paise on Monday to close the day at 7-month high of 68.53 versus the US dollar. Marking the sixth session of gains in a row, the domestic currency posted a strong performance since its open, on account of continuous foreign fund inflows and shrinking trade deficit.
Heavy buying in domestic stocks and weak dollar helped rupee to maintain strength against other key global currencies.
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At the Interbank Foreign Exchange, the rupee opened at 68.92 and advanced to a high of 68.45 during the day. It finally settled at 68.53, a rise of 57 paise against the dollar over its previous close. This was the highest closing level for the rupee since August 1, 2018 — when it ended at 68.43. The rupee appreciated by 161 paise in the last six trading sessions.
“Indian rupee continues advancing for the sixth day in a row, marking the best performer among the Asian currencies in today’s trade amid better than expected trade data and foreign fund flows,” said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities told news agency PTI.
Meanwhile, the stock markets–Sensex and Nifty–reversed losses in the afternoon trade on Monday, owing to a sharp surge in select bluechip heavyweights. The Sensex closed 71 points higher at 38,095.07, while the Nifty closed above the 11,450-mark.