Rupee Surge
The Indian rupee’s surge to a two-month high on Thursday signals a broader shift in the global economic landscape, influenced not just by domestic factors but by international dynamics as well.
The rupee depreciated by 9 paise against the US dollar to 65.03 against in opening trade on Monday as the greenback firmed up ahead of US Federal Reserve’s policy meet this week.
A strong dollar and sustained foreign fund outflow weighed on the domestic unit amid rising current account deficit in the December quarter, a currency dealer said.
The current account deficit rose to 2 per cent of the GDP at USD 13.5 billion in the December quarter, up from USD 8 billion or 1.4 per cent in the year-ago period, on the back of higher trade deficit, RBI data showed.
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On Friday, the rupee had ended 1 paisa lower at 64.94 against the US dollar.
Foreign investors withdrew a net Rs 150.46 crore from stocks on Friday, according to provisional data.
Meanwhile, the benchmark BSE Sensex, after falling for four straight sessions, rebounded 99.79 points, or 0.30 per cent, to 33,275.79 in opening trade.
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