<h1>Indian Rupee Strengthens Against US Dollar Amid Capital Inflows and Positive Economic Sentiment; RBI Monitors Volatility.</h1> The Indian rupee has generally appreciated against the US dollar, despite volatility during November-December 2016 due to the US presidential election and Fed rate hike. Since February 2017, the rupee strengthened with significant capital inflows, including foreign portfolio and direct investments. This appreciation is driven by positive sentiment towards India's economic growth, strong macroeconomic fundamentals, low inflation, and adequate forex reserves. The exchange rate is market-driven, with the Reserve Bank of India intervening to manage excessive volatility. The government and RBI are actively monitoring the situation and will respond as necessary, according to a statement by a finance ministry official.