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Rupee vs Dollar Today: The rupee strengthened against the dollar amid a rise in the Indian stock market. The rupee also gained strength after the RBI announced a higher-than-expected dividend payment to the government.
Today on Friday, the rupee improved 0.3% to 83.03 against the dollar, which is the strongest level since 15 December 2023. At the time of writing the news, the rupee was trading at 83.09 against the dollar in the foreign exchange market. Yesterday the rupee closed at 83.28 against the dollar.
The Reserve Bank of India's dividend of Rs 2.11 lakh crore to the government has doubled the budget estimate. Due to this the rupee has strengthened. Foreign investors have also started buying in the Indian stock market in the hope of a stable government in the Lok Sabha elections.
Dilip Parmar, currency strategist at HDFC Securities, said the rupee gained as sentiment towards stocks turned positive with the help of dividend macro outlook. The market sentiment is more positive about political stability in the country.
The rupee is also getting support from rising foreign exchange reserves. According to data released on Friday, India's dollar stock rose to a record $648.7 billion as of May 17.
Madhavi Arora, economist at Emkay Global Financial Services, said the rupee's move is based on two factors: better financial profile for India and RBI dividends, which bode well for the economy.