The Indian rupee has emerged as a standout performer, climbing 24 paise to close at 84.33 against the US dollar on Monday, driven by a sharp decline in Brent crude oil prices and robust foreign investment inflows. This surge, which saw the rupee touch a seven-month high, has positioned it as a leader among Asian and global currencies, even as the dollar index fell 0.50% to 99.44. “The rupee’s strength reflects India’s economic resilience,” said Jatin Trivedi, Vice President at LKP Securities, crediting lower import costs and steady capital flows.

In the interbank foreign exchange market, the rupee opened at 84.45, peaked at 84.10, and settled at 84.33, a notable recovery from Friday’s volatile close at 84.57. The 20% drop in Brent crude prices this year, now at $60.52 per barrel, has eased India’s import bill, bolstering the rupee. Meanwhile, foreign institutional investors (FIIs) injected ₹2,769.81 crore into equities, fueling market optimism. The BSE Sensex rose 294.85 points to 80,796.84, and the Nifty gained 114.45 points to 24,461.15, reflecting buoyant domestic sentiment. India’s forex reserves also grew by $1.98 billion to $688.13 billion, signaling robust economic buffers.

Analysts predict the rupee’s upward trajectory may continue, supported by a weaker dollar and cooling oil prices. “Sustained FII inflows and lower oil costs create a perfect storm for the rupee,” Trivedi noted, though he cautioned about potential volatility from global trade dynamics. The rupee’s stability, less volatile than peers like the Chinese yuan or Japanese yen, underscores the Reserve Bank of India’s strategic interventions. As India’s currency asserts its dominance, this rally not only boosts economic confidence but also highlights the nation’s growing influence in global markets, offering hope for sustained growth.