In the international market, the dollar has come at a 7 -month -old lower level.
Where there is a steady decline in the rupee against the dollar. On the other hand, the dollar air is constantly getting tight in the international market. On Tuesday, the dollar reached a seven -week low of seven weeks. In fact, weakened employment figures in America are seen indicating. Also, the Fed Meeting may see a cut in interest rates next week. Due to which there is a steady decline in the dollar. On the other hand, in India, there has been a slight decline in the rupee against the dollar. Due to which the rupee remains above the level of 88 against the dollar. Let us also tell you how the status of dollars and rupee is being seen.
Which countries lost dollars?
According to the Reuters report, the dollar weakened by 0.2 per cent to 147.21 against the Japanese yen, while the pound sterling rose 0.1 per cent to $ 1.3558. The euro came to $ 1.1752 after touching its strongest level after 24 July. Compared to many other currency, the dollar came to a low of 97.25, which is its lowest level since the end of July.
Economist estimates that 800,000 jobs may decrease, which may indicate that the Federal Reserve is behind in efforts to achieve maximum employment. The hopes of traders of the fed to be more aggressively relaxed are gradually increasing. According to the fedwatch tool of CME, the currency market has fully expected the cut of 25 basis points, and the possibility of a big cut of 50 basis points has also increased to about 12 per cent.
Indian rupee also declined
Due to frequent withdrawal and global trade tension of foreign portfolio investors, the rupee lost 3 paise to close at 88.12 (provisional) on Tuesday, losing the initial lead. Foreign currency traders said that India was under pressure due to the concerns of American tariffs and global trade uncertainties. In addition, continuous withdrawal of foreign capital also affected the notion of investors. In the Interbank Foreign Currency Exchange Market, the rupee opened at 87.98 against the US dollar and closed at 88.12 (provisional) after touching a low of 88.19, which is 3 paise less than the previous closed price.
On Friday, the rupee touched the lowest level of 88.38 so far, but reduced all the damage before closing at Rs 88.09 against the US dollar. On September 2, the rupee closed at its all -time low of 88.15 against the dollar. The foreign exchange market remained closed on Monday, as the Maharashtra government declared a public holiday on September 8 instead of 5 September on the occasion of Eid-e-Milad.
Decline may continue
Research analyst of Mirae Asset Sharekhan’s currency and commodities, Anuj Chaudhary said that we hope that the rupee will trade with a negative attitude as the issue of trade fee between India and America may remain under pressure on the rupee. However, until no announcement is made, signs of softening are seen in the market perception. Chaudhary further said that the weakness in the US dollar index can support the lower levels at the lower levels amid hopes of cutting interest rates. He said that investors can be cautious before this inflation. The spot price of USD/INR is expected to be between 87.80 and 88.45.
Stock market boom
Meanwhile, the dollar index measuring the strength of the dollar fell 0.17 percent to 97.29 against the six currencies. Brent crude was trading at $ 66.41 per barrel in crude futures trading at $ 66.41 per barrel. In the domestic stock market, the Sensex rose 314.02 points to close at 81,101.32, while the Nifty climbed 95.45 points to close at 24,868.60. According to exchange data, foreign institutional investors sold shares worth Rs 2,170.35 crore on Monday.
Nirmala gave this statement on money
Meanwhile, in a new statement, the White House trade advisor Peter Navaro said on Monday that India will have to come to some or the other turn in a trade talks with the US, otherwise it will not be good for India “. Navaro said in an interview to the show ‘Real American Voice’ that the Government of India is angry with him and he described India as the ‘Maharaja’ of tariffs. Finance Minister Nirmala Sitharaman has said that the government is keeping a ‘good eye’ on exchange rates. He insisted that apart from the rupee, many other currencies have also been devalued against the US dollar. He said, “The rupee decline is mainly against the dollar, not against any other currency. This is also because the dollar has been strengthened globally.