Indian rupee hits 7-month high, rises to 93.70 against dollar
What's the story
The Indian rupee hit a seven-month high in the early trading session on Monday, November 9. The currency appreciated by 22 paise against the US dollar amid early buying in the domestic market. At the interbank foreign exchange market, the rupee was trading at 93.70 against its previous close of 93.98.
Market dynamics
Factors affecting rupee's performance
Market participants are closely watching crude oil prices, foreign institutional investor flows, the dollar index, and global market developments for more cues on the domestic currency.
The rupee gained over 1% last week, thanks to a surge in foreign inflows into Indian equities and declining oil prices.
Foreign investors poured more than $4 billion into Indian shares last week, while pulling funds out of tech-heavy South Korea and Taiwan amid an AI market slump.
Economic indicators
Most Asian currencies weakened on Monday
The rupee has faced pressure from capital flows and oil prices in recent months. However, a sustained recovery in equity inflows and lower oil prices could provide much-needed support to the currency.
Meanwhile, most Asian currencies weakened on Monday after an unexpected rise in US payrolls bolstered expectations of a possible Federal Reserve interest rate hike in December.