After the major decline in the dollar and the intervention of RBI, the rupee has seen a tremendous rise for the third consecutive day. Earlier, two days the rupee closed with a slight rise in the dollar. But on Wednesday, the rupee is trading with a good lead. In which it is expected to rise even more during the business session. The matter is that after about 10 days, the rupee has been seen below the level of 88 in the $ 88 level. This means that the rupee is seen trading on a high of about 10 days.
According to experts, the dollar is trading below the index 97 level. At the same time, there has been a decline of about 11 percent in the current year. Because of which money is being supported. On the other hand, the trade talk has started once again between India and America. After which positive sentiments have been seen among investors. According to experts, in the coming days, money can be seen getting more support. Let us also tell you that at which level the rupee is seen doing business in the currency market.
Rupee gains for third consecutive day
On Wednesday, the rupee rose by 28 paise to 87.81 against the US dollar in early trade. The US Fed saw a widespread decline in the dollar amidst expecting interest rate cuts. Foreign currency traders said that investors are keeping a close watch on the policy meeting of Fed Reserve as the dollar is strengthening the rupee at the global level. The market is expected to deduct the interest rates by 25 basis points, and investors will monitor the speech of the Fed Chairman for further guidelines. In the Interbank Foreign Currency Exchange Market, the rupee opened at 87.84 against the US dollar and then reached 87.81, which shows a 28 paise lead in the previous closed price. On Tuesday, the rupee rose 7 paise to close at 88.09 against the US dollar. By the way, the rupee has seen a boom for the third consecutive day.
Fed decisions will be monitored
Anil Kumar Bhansali, Treasury Head and Executive Director of Finrex Treasury Advisors LLP, said that the dollar/rupee pair is expected to be unstable on Wednesday due to the dollar and the soft trend of the Reserve Bank of India, but due to continuous external pressure and policy uncertainty, there will be a risk of going down to the rupee. This week, investors can be cautious before the decision of the Federal Open Market Committee (FOMC) meeting. He said that a soft -stamical comment could bring a further decline in the dollar, while an aggressive stance could cause a decline in the dollar.
Rupees also rise due to these reasons
- Meanwhile, the dollar index, which described the strength of the dollar against the basket of six currencies, was trading at 96.73 with an increase of 0.11 percent.
- On the other hand, the price of Brent crude oil in the international market was trading at $ 68.33 per barrel with a decline of 0.20 per cent.
- The weak dollar atmosphere, inspired by the expectations of deducting 25 basis points in interest rates by the Federal Reserve Bank, has given some relief to the rupee.
- On the domestic stock market front, the Sensex rose 262.74 points to 82,643.43 in early trade, while the Nifty rose 85.25 points to 25,324.35.
- According to exchange data, foreign institutional investors on Tuesday bought shares worth Rs 308.32 crore on a pure basis.
One rupee may rise in rupee
Amit Prabari, managing director of CR Forex Advisors, said that in the near future, the rupee may have to face rasistance around 88.20. Observation from the US-India trade talks provides it with additional support, while a decisive break below 87.90 can open the way towards 87.50 and if the speed continues, it can reach 87.20. Meanwhile, the US on Tuesday described the conversation on the proposed bilateral trade agreement between its main trade -conversation Brendon Lynch and his Indian counterpart Rajesh Aggarwal. After US President Donald Trump doubled the tariff on Indian goods to 50 percent, which includes 25 percent additional fee on India’s purchase of crude oil from Russia, the relationship between New Delhi and Washington was under severe stress.