The Indian rupee has finally broken out of its dry spell and has regained strength against the US dollar. The rupee has noted a slight price uptick as compared to the US dollar, helping the Indian currency note a higher price pedestal in the last 5 months.
Also Read: Crypto Chaos: PNUT Token Owner Sparks Lawsuit Against the Community
US Dollar vs. Indian Rupee: What Is Happening?
Source: iStock
The Indian rupee has finally broken its consistent slump against the US dollar. The INR rose by 17 paise, opening at 84.37 and closing at 84.46 in earlier trading sessions. At the same time, the bond yields also opened at 6.8268% from 6.8710% in earlier sessions as well.
The surge noted in INR was primarily sparked by the massive election win that brought the Bharatiya Janata Party-led alliance, the mainstream Indian political regime, and its collaborators to win the majority of seats in the Indian state of Maharashtra in ongoing elections. The BJP-led alliance, touted as the “Mahayuti alliance,” bagged nearly 230 seats out of 288, earning a majority title after defeating major contemporaries within the realm.
Also Read: Trump’s 25% Tariffs on Canada, Mexico, and China: What it Means for Global Stocks
The Changing Dynamics and INR’s Market Performance
BJP’s major win in the state of Maharashtra prompted the INR to strengthen alongside stocks and equities. The markets recovered slightly due to renewed investor momentum. While the SENSEX noted an uptick of 1231.99 around 10:46 AM, NIFTY was also 1.71% up at 24,314. However, INR remains volatile as the US continues to introduce modifications in the economic domain.
“While Donald Trump’s aggressive trade policies loom large, the rupee’s outlook remains cautiously optimistic. The Reserve Bank of India’s projection of a GDP growth rebound to 7.6% in Q3 has infused fresh confidence in India’s economic trajectory. Additionally, a surge in capital inflows is likely to provide robust support,” CR Forex Advisors MD Amit Pabari said.
The US dollar is also sitting at a robust position of 107, up 0.29% at press time. While the Indian rupee has received a slight uptick in its valuation, the currency is still volatile as it battles selling pressure due to the strong US dollar presence.
Also Read: BONK & Dogecoin (DOGE) Price Forecast For November End
