Rupee Strengthens By 42 Paise To Close At 85.03 Against US Dollar

The Indian rupee closed 42 paise stronger at 85.03 against the US dollar on Monday, compared to its previous close of 85.44 a dollar on Friday, according to Bloomberg.

The currency hit its highest intraday high since April 4, jumping 50 paise at 84.95 a dollar

The rupee had opened higher against the greenback on Friday marking a break in its two consecutive weak starts on Wednesday and Thursday.

In early trade on Monday, Brent crude opened 0.58% higher at 66.18.

Commenting on the rupee gaining strength, CX Forex Advisors Managing Director Amit Pabari said, "Amid the volatility, India’s underlying economic fundamentals provided crucial support for the rupee."

The expert added that "steady rise in reserves enhances India's import cover, providing a crucial buffer against external shocks and lending stability to the rupee."

Pabari, however, stated that there might be some potential triggers for rupee weakening in the month of May. "The rupee often shows seasonal weakness in May , typically closing the month on a lower note . Historical data supports this trend, and one potential trigger for renewed pressure on the currency could be border escalation in tensions between India and Pakistan. Geopolitical uncertainties like these tend to drive investors toward safer assets, causing outflows from emerging markets and weakening local currencies like the rupee."