Early on Tuesday, the rupee gained 42 paise and reached 66.18 against the US dollar. This is a result of BJP’s spectacular win in UP and also the positive IIP numbers which led to an increase in the selling of the US currency by banks and also the exporters. This sale of the Dollar is a result of increased Foreign Direct Investments (FDIs) and also foreign investments in various sectors.
Forex dealers explained this as the weakening of USD against other currencies overseas and also a result of the domestic markets reaching are heights with NSE Nifty reaching a record height of 9,122.75 points in an opening trade that kept the rupee soaring.
Also, the increase in industrial production in January by 2.7 percent from the last year has also supported the rupee. On Friday the rupee gained 11 paise and reached a four months high of 66.60 against the USD on restarted sale of US Dollar by the banks and exporters. The Forex remained shut on Monday due to the public holiday of Holi.
