Indian rupee appreciated against the US dollar on Monday buoyed by a positive trend in domestic equity markets and a weak American currency overseas. Traders got support as India has surpassed Japan to become the world’s fourth-largest economy. NITI Aayog CEO B.V.R. Subrahmanyam said that India is now poised to displace Germany from the third rank in the next 2.5 to 3 years. Besides, State Bank of India (SBI) in its latest report has said that the Reserve Bank of India's (RBI’s) record dividend payout of nearly Rs 2.7 trillion to the government has been made possible due to robust gross dollar sales, higher foreign exchange gains, and steady increases in interest income. On the global front, ringgit continued its upward momentum to close higher against the United States (US) dollar as sudden shifts in US trade policies and growing concerns over the US fiscal policy pushed the US dollar index (DXY) lower.
Finally, the rupee ended at 85.08 (Provisional), appreciated by 37 paise from its previous close of 85.45 on Friday. The currency touched a high and low of 85.18 and 84.78 respectively.
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