After about four months, the rupee’s best friend is back in the market. This friend is none other than cheap crude oil. There is a continuous decline in the prices of crude oil. On Thursday, crude oil of Gulf countries has reached pre-war level. Due to which even increasing steps in dollar index have proved unsuccessful in depreciating the rupee. Due to cheap crude oil, the rupee has made a good start for the second consecutive day. Whereas a day earlier the end of the rupee had also been quite good. Since then, the rupee has seen an increase of more than 50 paise against the dollar. Let us also tell you what kind of figures are being seen in the rupee against the dollar.
Rupee rises for the second consecutive day
The rupee rose by 31 paise to 94.24 against the US dollar in early trade on Thursday. The reason for this was the continuous decline in global crude oil prices, due to which the prices fell below the level before the conflict started in West Asia. Forex traders said a weak dollar and a positive sentiment in the domestic stock market supported the rupee, while heavy selling by FIIs (foreign institutional investors) capped further gains. At the Interbank Foreign Exchange market, the rupee opened at 94.30 against the US dollar and strengthened to 94.24, which is 31 paise higher than its previous closing price. On Wednesday, the rupee strengthened by 21 paise and closed at 94.55 against the US dollar. This means that the rupee has seen a rise of 52 paise in two days.
Cheap crude oil becomes support of rupee
Choice Broking’s Commodity Fundamental Analyst Pinky Yadav said that the rupee opened strong at 94.30 against the US dollar due to sharp fall in global crude oil prices. Prices fell below pre-Iran conflict levels. Brent crude has fallen by more than 10 percent this week and by more than 21 percent this month, which has reduced concerns about India’s import bill and supported the domestic currency. However, gains in the rupee were limited as the US dollar remained close to a one-year high around 101.5, Yadav said. This happened because it is expected that the Federal Reserve can maintain a tight monetary policy.
Such is the condition of the market
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, was trading at 101.50, 0.10 per cent lower. Global oil benchmark Brent crude was trading 1.72 percent lower at $72.47 per barrel in futures trade. Talking about the domestic stock market, Sensex rose 440.23 points to 77,435.76 in early trade, while Nifty rose 137.80 points to 24,147.60. According to exchange data, foreign institutional investors sold shares worth Rs 1,843.40 crore on a net basis on Wednesday.
