The Indian rupee rose to its 5-month high on Monday after the US dollar weakened on the possibility of a pause in the interest rate hikes from the Federal Reserve after China and the US meet today for trade negotiations. Additionally, traders are awaiting the GDP estimates for the financial year 2018-19 that is due to be released today. Economists are expecting an annual GDP estimate of 7.2 percent for the whole year ending March 2019.
The Indian currency opened 69.49 against a dollar on Monday which is 34 paise higher than the previous close of 69.73 and the highest since 10 August 2018.
The Chinese and American officials are set to meet today in Beijing to have mid-level trade talks. US president Donald Trump will be meeting Chinese Vice President Wang at the World Economic Forum to be held in Davos later this month.
The American central bank chairman Jerome Powell said last week that the Federal Reserve could put a pause on the interest rate hikes if the US economy would weaken and even pledged that he will stay despite the pressure from Trump to resign.
BSE's benchmark Sensex opened higher at 36,033.20, 0.95 percent higher than the previous close and NSE's Nifty 50 was 0.86 percent higher at 10,819.60 points.
The rupee has fallen 0.86 percent this year. The dollar index, that is used to measure the American currency against six other major currencies, was trading 0.18 percent lower than the previous close at 96.01.