After a long time, good news has come from the currency market for India. In the morning session, the rupee made a good comeback and showed a rise of 5 to 6 paise. The reason for this was the investment of foreign investors, the dollar weakness, the boom in the stock market, better consumer sentiments than the GST reform and the US President’s soft attitude towards India. So many things have been seen together in the rupee’s favorite after a long time. In recent times, even after the GST reform, there was a steady decline in the rupee. The migration of foreign investors was not stopping. Due to which the rupee was getting a decline. By the way, the rise in crude oil prices is now a new problem. There is also a reason for that. Israel has attacked Qatar to kill the Hamas leader. Due to which crude oil prices have seen an increase. Let us also tell you what kind of figures are being seen in the rupee.
How much gain in rupee
On Wednesday, the rupee rose 5 paise to 88.10 against the US dollar in early trade. This helped in the investment of foreign institutional investors (FIIs) and the dollar weakening against foreign currencies. However, foreign currency traders said that a slight increase in crude oil prices at the global level stopped a rapid growth in the local currency. In the Interbank Foreign Currency Exchange Market, the rupee opened at 88.11 against the US dollar and then reached 88.10, which is 5 paise more than the previous closed price. The rupee lost the initial lead and fell by 6 paise to reach its record low of 88.15 against the US dollar on Tuesday. On Friday, the rupee reached the lowest level of 88.38 so far, but closed at 88.09 against the US dollar after the decline declined.
Major reasons for rapid rupee rise
- The dollar indicator index of the dollar’s strength against six currency fell to 97.70. The special thing is that in the current year, the dollar index has seen a decline of about 10 percent. Because of which the money is seen getting support.
- On the other hand, Donald Trump is seen taking a soft stand after imposing 50 percent tariff on India. He said that India and America should sit in a platform and solve all the issues. He also said that he is very keen to meet Prime Minister Narendra Modi.
- On the other hand, the GST reform has also started showing its amazing. Many companies have announced a cut in the prices of their products. Not only local companies but foreign companies have announced to cut their products drastically. Due to which the money is getting support.
- On the other hand, the stock market is seeing a steady rise. Its effect is also being seen in the rupee. On Wednesday, the Bombay Stock Exchange’s major index Sensex rose 363.39 points or 0.45 percent to 81,464.71, while the National Stock Exchange’s major index Nifty increased by 117.60 points or 0.47 percent to 24,986.20.
- After a long time, foreign investors appeared to be kind to the stock market. As per NSDL data, foreign institutional investors bought shares worth Rs 2,050.46 crore on Tuesday. Whereas in the current year, foreign investors have withdrawn more than Rs 1.43 lakh crore from the stock market.
- Apart from this, crude oil prices are seeing a rise in the international market. Brent crude was trading at $ 66.96 per barrel in crude futures trading at $ 66.96 per barrel. The special thing is that Brent crude oil is currently trading below $ 70 per onon, which is much better for India.
What do you say?
Finrex Treasury Advisors LLP’s Treasury Head and Executive Director Anil Kumar Bhansali said that the FPI had bought shares yesterday (Tuesday)… and US President Donald Trump had tweeted that India and America had continued to negotiate to overcome business obstacles between the two countries and he is eager to talk to Prime Minister Narendra Modi. Bhansali said that the attack on Hamas leadership by Israel in Qatar led to an increase in Brent oil prices by 0.86 percent, which increased the concern of possible disruption in the area.