June 5: The Indian rupee appreciated by 50 paise against the US dollar in early trade, supported by positive market sentiment following the Reserve Bank of India’s decision to relax key investment norms.
Market participants said the policy move boosted foreign investor confidence, leading to increased capital inflows into domestic markets. The easing of rules is expected to encourage broader participation from overseas investors and improve liquidity conditions.
The currency also benefited from improved risk appetite in global markets and steady demand outlook, adding to the upward momentum.
Analysts noted that the RBI’s measures are aimed at strengthening financial stability while making India a more attractive destination for long-term foreign investment. The rupee’s gain reflects a combination of regulatory support and favourable market conditions.