Sensex gains 329 points, Nifty rises to 19,500 mark
The rupee closed at 87.58 against the US dollar on Monday, slipping six paise after a brief morning high.
A stronger dollar and rising oil prices weighed it down, but Indian stock markets stayed upbeat—Sensex jumped 329 points and Nifty rose by nearly 98.
Geopolitical tensions and global cues weigh on rupee
The US dollar got a boost after dovish commentary from Federal Reserve Chair Jerome Powell, which fuelled expectations of a potential rate cut as early as September, making global investors cautious.
Fitch kept India's BBB- rating but warned about fiscal and tariff risks, which didn't help market mood.
On top of that, the US criticized India for buying Russian oil, adding some geopolitical tension to the mix.
Forex reserves grew by $1.5 billion
Despite currency pressure, India's forex reserves grew by $1.5 billion to $695.1 billion as of August 15—giving the country a bit more cushion against global uncertainty.