New Delhi, India (BBN)– Extending its rising streak for the fourth straight session, the Indian rupee on Monday jumped by another 32 paise to trade at a fresh 11-month high of 58.47 against the US dollar in early trade on sustained foreign capital inflows after the BJP-led NDA swept the Lok Sabha elections.
Increased selling of the dollar by banks and exporters amid sustained foreign capital inflows supported the rupee, The Indian Express reported quoting dealers.
Besides, a strong rally in domestic equity market in opening trade and the euro’s gain against the dollar overseas also helped the rupee, the newspaper added.
The Indian rupee rose 50 paise to 58.79 to end at 11-month high against the dollar on Friday.
Bhavin Shah, CEO of Equirus Securities told NDTV that an appreciating rupee has hurt IT stocks.
"The rupee's average level in 2013-14 was 62 per dollar. Already, it is down a few percentage points and that will have an impact on margins," he added.
The rupee is trading at an 11-month high on expectations of continued robust foreign buying in domestic shares and debt after Narendra Modi-led BJP swept the elections. The partially convertible currency posted its best weekly gains in eight months last week as Mr Modi won an overwhelming majority in elections.
BBN/SSR/AD-19May14-1:27 pm (BST)