After 6 days, the currency market has got good news. The rupee has seen a rise in the 7th day after a steady fall in the dollar. This fast was seen due to a decline in dollar index in foreign markets. By the way, there could be more increase in this boom. But this could not happen. The reason for this is the selling of foreign investors and a decline in the stock market. On the other hand, due to the rise in crude oil prices in foreign markets, the rise in the rupee was also limited. Apart from this, a trade deal between America and India has not been finalized. If there is a delay in this deal, the rupee is likely to suffer even more damage. Let us also tell you how much the rupee is being seen in the match.
Rupee increases after 6 days
The rupee rose by 17 paise to 86.24 against the US dollar in early trade on Thursday due to dollar weakness in foreign markets. Foreign currency traders said that uncertainty about the Indo-US trade agreement is making a huge impact on the foreign exchange market, causing the rupee to trade within a limited range. In addition, the negative trend in the domestic stock markets and the withdrawal of foreign capital affected the notion of investors and limited the boom of local currency. The rupee opened at 86.33 in the Interbank Foreign Currency Exchange Market and reached 86.24 against the dollar in early trade, which is 17 paise more than the previous closed level. On Wednesday, the rupee fell by 3 paise to close at 86.41 against the dollar.
These also remain big factor
- Meanwhile, the dollar index measuring the dollar strength against six currencies fell 0.06 percent to 97.15, as investors are monitoring the trade agreement before the August 1 deadline.
- Global oil benchmark brent crude futures increased by 0.25 percent to $ 68.68 per barrel.
- The completion of the US-Japan Agreement and the conversation on the US-European Union Union Agreement has increased optimism in the business world, which can reduce the pressure on the global economy.
- Meanwhile, in the domestic stock market, the Sensex fell 124.79 points or 0.15 percent to 82,601.85, while the Nifty fell at 15.75 points or 0.06 percent to close at 25,204.15.
- According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 4,209.11 crore on a pure basis on Wednesday.
Know what experts say
Anil Kumar Bhansali, Treasury Head and Executive Director of Finrex Treasury Advisors LLP, said that uncertainty over the US-China trade talks and lack of peace between Russia and Ukraine is getting limited. Bhansali further said that despite the decline in the dollar index and increase in risky properties, the Indian rupee has not been able to show any significant edge, due to which the dollar is a huge demand in the system. Bhansali said that the rupee will be within the range of 86.10 to 86.60.
He further said, “We need to keep an eye on the events especially on the deal front.” If the conversation fails or delays it, then there may be new pressure on Indian exporters – which will further increase the challenges of the rupee. However, if an agreement is reached, it can provide a very important relief. Till then, market participants are likely to be cautious due to uncertainty.