Rupee gains 26 paise as 7.8% GDP growth offsets global market jitters
The Indian Rupee strengthened against the US dollar, bolstered by strong domestic GDP growth of 7.8% and foreign portfolio inflows. Despite global market jitters caused by geopolitical tensions in the Middle East, the currency showed resilience.
Why it matters
India's economic performance is being tested against global instability, serving as a key indicator for emerging market health.
Rupee began Tuesday on a strong note, rising 26 paise to 94.96 against the US dollar in early trade, supported by robust domestic economic growth, containing fiscal slippage and portfolio-related inflows.Forex traders said the USD/INR pair appears to have found a strong near-term base around 95.10-95.20. MSCI-related inflows have also provided temporary support to the rupee.At the interbank foreign exchange market, the rupee opened at 95.06 against the US dollar before gaining further to touch 94.96. The currency had closed 21 paise higher at 95.22 on Monday after recovering from its initial losses.The dollar index, which measures the greenback's strength against a basket of six currencies, was trading at 99.46, up 0.03 per cent.Brent crude, the global oil benchmark, rose 0.63 per cent to $91.06 a barrel in futures trade.
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