Rupee Strengthens On Strong Economic Data, Exit Polls
The local currency strengthened by 32 paise to close at Rs 83.14 against the greenback.
The Indian rupee strengthened on Monday on likely foreign fund inflows into local equities, following India's upbeat GDP growth data and exit polls showing a landslide win for the PM Narendra Modi-led NDA.
The local currency strengthened by 32 paise to close at Rs 83.14 against the greenback. It had opened at Rs 82.99. The local legal tender had closed at Rs 83.46 on Friday.
India on Friday reported that economic growth continued to print better than expected in the fourth quarter of fiscal 2024 and for the full fiscal, led by the expansion in industry and higher capex. The gross domestic product rose to 7.8% in the January-March quarter, according to the latest estimates released by the government's statistical office.
On Saturday, as the Lok Sabha elections concluded, exit polls indicated a clear victory for the National Democratic Alliance.
Analysts suggest that this strengthening of the local currency may continue on Tuesday.
"Rupee and Indian equity seen to be on a roll today before the election results and expect the same tomorrow with the main interest now being whether the current ruling party will be able to cross 400 seats or not," Anil Kumar Bhansali, head of Treasury and Executive Director of Finrex Treasury Advisors LLP, wrote.
The dollar index was at 104.56, down from its closing on Friday.
