The rupee appreciated by 12 paise to 85.43 against the US dollar in early trade on Monday, supported by a weaker American currency and positive macroeconomic indicators, which have raised expectations of a possible rate cut in the Reserve Bank of India’s upcoming monetary policy review.
However, volatile equity markets, foreign fund outflows, and rising crude oil prices amid global trade uncertainties limited further gains, according to forex traders.
Analysts noted that investors will be closely watching upcoming macroeconomic data releases for additional market direction.