After a long time, the rupee has seen a rise against the dollar.
After a long time, good news has come from the currency market. There has been a good rise in the rupee against the dollar. Even though this increase was seen by 10 paise, it can be called good because the rupee was falling for a long time. If experts are to be believed, further appreciation in the rupee may be seen in the coming days. In fact, foreign investors have once again started investing in India.
In the month of October, if we forget the decline of only 8th October, then there has been a rise. Due to which investors have got a profit of Rs 11 lakh crore. A decline is being seen in the dollar index. Besides, there has also been a decline in the prices of crude oil. The most important thing is that after some EU countries, a deal has been made with Britain also regarding free trade.
At the same time, good signs are being received for India from America also. As America has excluded generic medicines from tariff. These are the reasons due to which the rupee seems to be getting a boost. Let us also tell you what kind of figures are being seen in the rupee against the dollar.
An increase was seen in the rupee
On Friday, the rupee rose by 10 paise and closed at 88.69 (provisional) against the US dollar in the Interbank Foreign Currency Exchange market. Rupee got support due to strength in domestic markets and fall in crude oil prices. Forex traders said that the rise in rupee was due to strong domestic markets and fall in commodity prices. The intervention of the central bank also supported the domestic currency. However, he said a strong US dollar capped the sharp rise. If we look at the data, the rupee opened at 88.80 and after trading in the range of 88.50-88.80, closed at 88.69 (provisional), which is 10 paise more than the previous closing price. On Thursday, the rupee had closed at 88.79 against the dollar.
Rupee rose due to these reasons
- Meanwhile, the dollar index, indicating the strength of the dollar against six currencies, fell by 0.21 percent at 99.32. By the way, in the last one month, an increase of about two percent has been seen in the dollar index.
- There is a big fall in the prices of crude oil in the international market. Brent crude oil of Gulf countries is trading at $64 per barrel with a decline of about two percent.
- The rupee also appeared to be getting support on the domestic stock market front. In the current month, except the 8th, there has been a rise in all the days. On Friday, BSE Sensex closed 328.72 points higher at 82,500.82 while Nifty closed 103.55 points higher at 25,285.35. In the current month, an increase of 2.50 percent has been seen in the stock market.
- The attitude of foreign investors has also been seen to be quite soft towards India. Investors have been investing in the stock market for three consecutive days. According to NSDL data, foreign institutional investors bought Rs 1,308.16 crore from the stock market on Thursday.
- On the other hand, a positive attitude is being seen on the trade deal between America and India. This is indicated by the fact that recently Indian PM Narendra Modi has spoken to the US President. If experts are to be believed, India and America may soon share good news on trade.
- Apart from this, indications of reduction in interest rates are also visible from the American Central Bank. According to international media reports, the Fed may once again cut the rate by 25 basis points. Due to which the dollar index may fall and the rupee may get support.
What do experts say?
Anuj Chaudhary, Research Analyst (Currency and Commodity), Mirae Asset Sharekhan, said that we estimate that the rupee will trade with a positive trend due to the strength in the domestic markets and widespread weakness in crude oil prices. The rupee may gain further strength due to the shutdown of many departments in the US due to financing problems and the increasing possibility of interest rate cuts by the US Federal Reserve. Chaudhary said that a strong US dollar and increasing demand for the dollar from importers could put a halt to the rise of the rupee. The spot price of dollar-rupee is expected to be between 88.40 to 88.85.