There has been a rise in the rupee against the dollar.
It is clearly visible from the kind of news coming in regarding the possible trade deal between America and India that the friendship between Trump and Modi is showing its fruits. This is the reason why the rupee remains dominant in the currency ring. For the past few days, no currency has been able to compete with the rupee. Even the dollar looks quite helpless. According to reports, the 50 percent tariff imposed by America may come down to 15 percent. The effect of which is visible in the form of rise in rupee. On the other hand, the return of foreign investors has also played an important role in strengthening the rupee. Apart from this, the rise in the stock market is also an important reason. Let us also tell you at what level Ruya is seen doing business.
Rupee rose
The rupee rose 13 paise to 87.80 against the US dollar in early trade on Thursday due to optimism over the US-India trade agreement. Forex traders said foreign capital inflows, positive trend in domestic stock markets and risk-based sentiment boosted investor sentiment. At the Interbank Foreign Currency Exchange market, the rupee opened at 87.80 against the US dollar, registering an increase of 13 paise from its previous closing price. On Monday, the rupee had increased by 9 paise and closed at 87.93 against the US dollar. Foreign exchange markets remained closed on Tuesday and Wednesday due to Diwali and Diwali Balipratipada respectively.
Positive conversation between Trump and Modi
Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said the Indian rupee opened stronger following optimism over the US-India trade deal. Trump said India will reduce Russian oil purchases and the market expects a trade deal to be signed soon in which tariffs on India will be reduced from the current 50 percent to 15 to 16 percent. Prime Minister Narendra Modi and US President Donald Trump discussed trade related issues over phone.
Both sides are making efforts to improve bilateral relations. There is tension between the two countries after Washington imposed a huge tariff of 50 percent on Indian goods. After this conversation on Tuesday, Trump described India-US relations as “great” and without elaborating, said that both sides are working on some “great deals”.
Bhansali further said that the market sentiment will remain cautious as traders will keep an eye on global cues, US economic data and RBI monetary signals for further direction. US President Donald Trump has reiterated his claim that India has agreed to “stop” buying oil from Russia and will reduce it to “almost zero” by the end of the year. However, he said that it is a process and it will take some time.
800 points rise in stock market
Meanwhile, the dollar index, which gauges the dollar’s strength against six currencies, was trading 0.15 per cent higher at 99.04. Global oil benchmark Brent crude was trading at $ 64.24 per barrel with a gain of 2.64 percent in futures trade. In the domestic stock market, Sensex rose 800 points to cross 85,200 points in early trade, while Nifty rose 198.3 points to 26,066.90. According to exchange data, foreign institutional investors bought shares worth Rs 96.72 crore on Tuesday.