On Tuesday, the Indian rupee experienced a slight strengthening against the US dollar, driven by expectations of intervention by the Reserve Bank of India to prevent further depreciation of the rupee. This improvement was further fueled by anticipated substantial inflows of foreign direct investment. Notably, the Adani Group is contemplating a raise of $600 million through offshore loans, while Belstar Microfinance intends to garner $150 million via an Initial Public Offering.
Moreover, renewed optimism regarding a potential interest rate cut in the United States this year has provided additional support to the rupee. However, the strength of the American currency in international markets, coupled with escalating crude oil prices and outflows of foreign funds, have acted as constraints on the rupee’s gains. On Monday, Foreign Institutional Investors were net sellers in the capital markets, disposing of shares worth Rs 2,168.75 crore, according to exchange data.
Presently, the partially convertible currency is trading at 83.49, exhibiting a 3-paise increase from its previous close of 83.52 on Monday. Throughout the trading session, the currency reached a high of 83.5025 and a low of 83.4750, reflecting the fluctuating dynamics influencing its value against the US dollar.
