Reversing previous session’s losses, Indian rupee staged a smart recovery against dollar on Monday, due to US dollar selling by banks and importers amid a dip in global crude oil prices. Traders took support as S&P Global Ratings has projected India's gross domestic product (GDP) to grow 6.5 per cent in the current fiscal year (FY26) and 6.7 per cent in the next, saying tax cuts and monetary policy easing will give a boost to consumption-driven growth. Some support also came as SBI research in its latest report stated that share of India's merchandise exports to other countries increased as shipments to the US declined since July 2025, indicating diversification of export basket across product categories. On the global front, the U.S. dollar edged marginally lower Monday, handing back some of the prior week’s gains as comments from influential Fed policymaker John Williams prompted traders to take on further bets that the Federal Reserve will ease interest rates next month.
Finally, the rupee ended at 89.16 (Provisional), appreciated by 50 paise from its previous close of 89.66 on Friday. The currency touched a high and low of 89.50 and 89.05 respectively.
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