The rupee also benefited from the weak dollar against major world currencies. The rebound in the stock markets today also strengthened the rupee.
Mumbai: The rupee strengthened by 11 paise to Rs 74.16 on Friday in the inter-banking foreign exchange market. There was good demand from dealers, bankers, and exporters in the business, and availability was also adequate.
The rupee also benefited from the weak dollar against major world currencies. The rebound in the stock markets today also strengthened the rupee. The exchange rate was higher at Rs 74.25 in the session.
The Indian rupee, as well as the Japanese yen, Pound sterling, Brazilian real, and other Asian currencies, have all fallen sharply against the dollar in the last few months due to the Covid-19 lockdown. It has also caused by the slowdown in economic activities. This is despite the sharp interest rate cuts by the US Federal Reserve.
Since the beginning of 2020, the Indian rupee has depreciated by nearly 7% to 76 levels against the US dollar in the fear that the world might have gone into a recession.