There has been a huge fall in the rupee against the dollar on Monday.
Even though there has been a boom in the stock market. But the dollar and crude oil cast such a dark eye on the currency market that the rupee fell by more than 40 paise. Before Monday, the rupee had seen an increase of more than one percent. But due to Monday’s fall, the rupee once again crossed the level of 88 dollars against the dollar. According to experts, there are many factors in the coming days due to which a rising trend in the rupee may be seen. Let us also tell you at what level the rupee is seen trading in the currency market.
Big fall in rupee against dollar
On Monday, the rupee fell 43 paise and closed at 88.26 (provisional) against the US dollar. The reason for which is being said to be the rise in crude oil prices and increasing demand for dollars from importers at the end of the month. Forex traders said the rise in crude oil prices was due to a possible US-China trade deal, which boosts expectations of an increase in global oil demand.
At the Interbank Foreign Currency Exchange market, the rupee opened at 87.87 against the dollar and fell to a low of 88.31 and a high of 87.86 during trading. It finally closed at 88.26 (provisional) against the dollar, which is 43 paise less than the previous closing price. On Friday, the rupee closed 5 paise higher at 87.83 against the US dollar. Traders are keeping an eye on developments related to trade talks and geopolitical events for further signals.
What kind of figures can be seen in the market?
- Meanwhile, the dollar index, which reflects the dollar’s strength against six currencies, was trading 0.08 percent down at 98.86.
- In the international market, Brent crude oil of Gulf countries was trading at $ 65.39 per barrel with a decline of 0.85 percent.
- In the domestic stock market, Sensex jumped 566.96 points to close at 84,778.84, while Nifty rose 170.90 points to 25,966.05.
- According to exchange data, foreign institutional investors bought shares worth Rs 621.51 crore on Friday.
- Meanwhile, the RBI said on Friday that India’s foreign exchange reserves increased by $ 4.496 billion to $ 702.28 billion during the week ended October 17.
- This increase is due to increase in gold reserves by more than 6 billion dollars. Last week, the total currency reserves had increased by $ 2.176 billion to $ 697.784 billion.
What do experts say?
Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset Sharekhan said, “We expect the rupee to trade with a positive bias due to optimism over the trade agreement and better domestic market sentiment amid strong domestic equity markets.” Rupee may also get support due to reduction in geopolitical tension. However, demand for dollars from importers at the end of the month and rise in global crude oil prices may put a halt to the rupee’s rise. He expects the rupee to remain between 87.80 and 88.50 against the dollar in the coming days.