Mumbai, India (BBN) – Indian rupee strengthened to as much as 66.13 per dollar, its strongest level since April last year, as Prime Minister Narendra Modi’s big win in the state of Uttar Pradesh was seen bolstering his economic reform agenda.
Accordig to forex dealers, increased selling of the US currency by exporters and banks amid higher foreign inflows following BJP’s resounding win in Uttar Pradesh and positive IIP numbers boosted the rupee sentiment, reports The Hindu Business Line quoting PTI.
They said that a weak dollar against other currencies overseas and buoyant domestic stock markets with the NSE Nifty hitting a new high of 9,122.75 points too supported the rupee momentum.
Furthermore, industrial production expanding by 2.7 per cent in January too supported the rupee, they added.
The Index of Industrial Production (IIP) rose to 2.7 per cent in January this year, with all three tracked sectors of mining, electricity and manufacturing registering positive growth.
In contrast, the IIP had contracted by 1.6 per cent in January 2016. It stood at 0.1 per cent in December last year.
The domestic unit opened higher by 42 paisa at 66.18 at the Interbank Foreign Exchange market today.
It hovered in a range of 66.24 and 66.13 before quoting at 66.18, up 42 paise at 2.50 pm local time.
On Friday, the rupee had gained 11 paisa to close at a fresh 4-month high of 66.60 against the dollar on renewed selling of the US currency by exporters and banks.
Forex market remained closed yesterday on account of Holi.
Meanwhile, the benchmark BSE Sensex was trading higher by 455.07 points or 1.57 per cent at 29,401.30.