The Indian rupee extended rally for the fifth straight session and settled with gains of 25 paise at 85.13 (provisional) against the US dollar on Monday, boosted by a sharp fall in the dollar index and a surge in the domestic equities. Weakness in dollar overseas continued amid uncertainty surrounding Trump policies and its impact on the US economy. Meanwhile, President Donald Trump criticized Powell for being too slow to cut interest rates, adding that his removal “can’t come quickly enough.” Dollar index that measures the greenback against a basket of currencies hit a new three-year low and is down more than 1% at 98.04. Moreover, fresh foreign fund inflows and decline in crude oil prices also favoured the rupee.
Indian shares rose sharply on Monday, extending strong gains from last week as the postponement of U.S. tariffs and newly announced exemptions on certain products sparked hopes for possible negotiations that might ease the strain on global trade. The benchmark S&P/BSE Sensex jumped 855.30 points, or 1.09 percent, to 79,408.50 and the broader NSE Nifty index closed at 24,125.55, up 273.90 points, or 1.15 percent, from its previous close. At the interbank foreign exchange, the domestic unit opened at 85.15 and moved between the intraday high of 85.03 and the low of 85.19 against the greenback.