The BRICS TimesLimited Gains for Rupee Amid Foreign Fund Outflow and Oil Price Rise
The Indian Rupee has seen a sharp decline this year. Recently, the currency slipped near a record low, below 91 per dollar. However, on Tuesday, the domestic currency showed a slight recovery in early trade. The rupee strengthened by three paise to touch 89.95 per dollar. A weak dollar and robust industrial production figures supported the rupee.
Rupee Shows Strength
Foreign exchange dealers noted continuous foreign capital outflow. Crude oil prices also saw a marginal rise. A weak start in the domestic stock market limited the sharp jump in the rupee. The rupee opened at 89.98 against the US dollar in the interbank forex market. It rose to 89.95 per dollar during trade. This shows a three-paise gain from its previous close.
The previous day, Monday, the rupee had closed at 89.98 per dollar. Meanwhile, the Dollar Index, which gauges the dollar’s strength against six major currencies, fell by 0.03 percent to 98.01. The domestic stock market also reflected a weak trend. In early trade, the Sensex fell by 209.32 points to 84,486.22. The Nifty dropped by 63.25 points, reaching 25,878.85.
Boost in Industrial Production
Internationally, Brent crude futures saw a slight rise of 0.03 percent. It was trading at $61.96 per barrel. Stock market data showed Foreign Institutional Investors (FIIs) were net sellers on Monday. They sold shares worth ₹2,759.89 crore.
Simultaneously, strong performance in the mining and manufacturing sectors signalled an acceleration in industrial activity. Official data released on Monday showed the country’s industrial production growth rate reached a two-year high of 6.7 percent in November.
