Rupee strengthens by 12 paise to 83.17 against US dollar in early trading | Finance News

The Indian rupee strengthened against the US dollar on Friday, appreciating by 12 paise to 83.17. This positive trend was attributed to a bullish performance in the domestic equities market, where benchmark indices reached new highs. The surge in the rupee was also supported by the Reserve Bank of India’s (RBI) record dividend payout of Rs 2.11 trillion to the government for the fiscal year ending March 31, exceeding budgeted expectations.

Forex traders noted that the RBI’s substantial dividend transfer provided a significant boost to government revenue, especially as a new administration prepares to take office. The rupee opened at 83.26 against the dollar and continued to strengthen throughout the trading session.

In addition to the currency market movements, Brent crude futures, the global oil benchmark, saw a slight increase of 0.05% to $81.40 per barrel. Analysts and experts are optimistic about the rupee’s outlook, with expectations of further appreciation in the short and medium term.

On the equity front, both the BSE Sensex and NSE Nifty indices reached new milestones, with the Sensex trading higher at 75,469.25 points and the Nifty breaching the 23,000 level. The market capitalization of listed companies on the NSE also surpassed $5 trillion on the same day, reflecting positive investor sentiment.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets, injecting Rs 4,670.95 crore into the market. Overall, the financial markets in India showed resilience and strength, with the rupee’s performance reflecting positive economic indicators and investor confidence.