Rising for third straight session, Indian rupee strengthened substantially against dollar on Monday, owing to dollar sale by exporters and banks. Sentiments were upbeat as RBI’s data states that foreign portfolio investors have pumped in a record $36 billion into equities so far this fiscal up to March 10, which is the highest since FY13. On the other hand, net foreign direct investment inflows jumped to $44 billion, till end January, up from $ 36.3 billion a year ago, driven by the massive inflows in November and December, with the last month of the year getting a record $ 6.3 billion. Also, Sebi’s data showed that investments through participatory notes (P-notes) in the Indian capital market rose to Rs 91,658 crore at February-end, making it the highest level in 33 months, suggesting growing confidence of overseas investors. On the global front, currency market jitters had limited impact on the pound on Monday, which was little changed against the dollar and euro, and positioning data showed speculators reduced their sterling longs but remained bullish.
Finally, the rupee ended 72.37, stronger by 15 paise from its previous close of 72.52 on Friday. The currency touched a high and low of 72.47 and 72.34 respectively. The reference rate for the dollar stood at 72.51, and for Euro stood 86.45 on March 19, 2021. While the reference rate for the Yen stood at 66.64, the reference rate for the Great Britain Pound (GBP) stood at 100.94.
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