On Tuesday, the rupee fell by 10 paise and closed at 93.00 (provisional) against the US dollar. This happened because investors remained cautious ahead of US President Donald Trump’s deadline to open the Strait of Hormuz and the Reserve Bank’s monetary policy review. Forex traders said that the dollar-rupee pair is trading under pressure. Its decline has been due to the continuous withdrawal of foreign capital, rising crude oil prices amid the strengthening of the dollar and unstable geopolitical situation. Apart from this, market participants will also keep an eye on the changing geopolitical news and upcoming monetary policy decisions of RBI. Let us also tell you what kind of figures are being seen in the currency market.
93 becomes one dollar
At the Interbank Foreign Currency Exchange market, the rupee opened at 93.05 against the US dollar. After this it weakened and started trading at 93.07, which shows a decline of 17 paise from its previous closing price. During the day, the rupee also touched an intraday high of 92.86 against the dollar. At the end of Tuesday’s trading session, the rupee was quoted at 93.00 (provisional), which was 10 paise lower than its previous close. On Monday, the rupee strengthened by 28 paise to close at 92.90 against the US dollar. This happened after the Reserve Bank took measures to curb speculation spree and reduce volatility in the Indian currency.
RBI has tightened its rules to curb speculative situations and has fixed the limit of ‘net open position’ of banks at US $ 100 million. Meanwhile, the Reserve Bank’s rate-setting committee on Monday began its three-day brainstorming session on the first bi-monthly monetary policy of the current financial year. The decision of the six-member Monetary Policy Committee (MPC), headed by Reserve Bank Governor Sanjay Malhotra, will be announced on Wednesday.
Dollar falls and stock market rises
The dollar index, which measures the dollar’s strength against a basket of six currencies, fell 0.15 percent to 99.83. Global oil benchmark Brent crude was trading at US $ 107.61 per barrel, down 1.97 percent in futures trade. In the domestic stock market, Sensex jumped 509.73 points to close at 74,616.58, while Nifty rose 155.40 points to 23,123.65. According to exchange data, foreign institutional investors sold shares worth Rs 8,167.17 crore on Monday. Meanwhile, the deadline given by US President Donald Trump to open the Strait of Hormuz is ending today, and Iran has still not relented on the ceasefire proposal.