Indian rupee appreciated by 11 paise to 83.18 against the US dollar

Following strong gains in Asian peers, the US treasury yields dropped and the dollar softened on speculation that the US Federal Reserve is probably done raising interest rates in this cycle.

As a result, the Indian rupee gained 11 paise to 83.18 against the US dollar on Monday. The local currency began trading at 83.13 per dollar, down from Friday's close of 83.29.

An increase in one currency's value relative to another is known as currency appreciation. A number of factors, such as trade balances, interest rates, business cycles, and governmental policies, can cause currencies to appreciate against one another.

The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was up 0.03% at 105.05. US Treasury yields decreased following data that suggested the labor market was cooling in the nation. Asia's 10-year US Treasury yield was at 4.57%, significantly lower than the multi-year high above 5% set last month.

According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth ₹12.43 crore on Friday, making them net sellers in the capital markets.

Also read: Tamil Nadu government announced the second DA increase for 2023

The 30-share BSE Sensex was up 395.34 points, or 0.61%, at 64,759.12 in the domestic equity market, while the NSE Nifty increased 122.70 points, or 0.64%, to 19,353.30.

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