On Monday, there was a tremendous rise in the rupee against the dollar.
A record fall in the rupee was seen on Friday. After that, it was being said in all the reports that a fall in the rupee may be seen on Monday also. But when the market opened on Monday, a different scene was seen. The rupee made a strong comeback and showed a rise of about 50 paise. Experts believe that if the rupee is successful in performing better during the trading session, then further rise in the rupee may be seen and the rupee may recover from the level of 89 once.
However, this rise in rupee has not been seen just like that. Two main reasons are believed to be behind this. One is that there has been selling of US dollars by the banks. Due to which the American currency appeared weak against the rupee. Besides, the prices of crude oil in the international market also helped a lot in strengthening the rupee. Let us also tell you at what level the rupee is seen trading against the dollar. The second important question is whether the rupee can reach the level of 90 by the end of December. Let us try to understand…
strong counterattack of rupee
On Monday, the rupee recovered from record low and rose 49 paise to 89.17 against the dollar in early trade due to selling of US dollars by banks and fall in crude oil prices in the international market. According to foreign currency traders, the rupee has received support due to the positive opening in the domestic stock markets and the intervention of the Reserve Bank of India (RBI). The rupee opened at 89.46 against the dollar and then rose by 49 paise to reach 89.17, which is 49 paise higher than the previous closing price.
Earlier on Friday, the rupee fell 98 paise to close at its all-time low of 89.66 against the US dollar due to heavy demand for the dollar in the domestic foreign exchange market amid widespread selling pressure in local and foreign stock markets and trade uncertainties. In the biggest fall in three years, the domestic currency fell 98 paise to finally close at 89.66 against the US currency. Earlier, the biggest one-day fall was recorded at 99 paise against the dollar on 24 February 2022.
Will the rupee cross the level of 90?
Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said that most traders believe that the rupee will not be able to cross the 90 level as it may remain safe for a few more weeks and a positive outcome of the (India-US) trade agreement is expected by the end of December. There is a possibility of further weakness in the market after the rupee reached a record low on Friday. He further said that in the absence of a trade agreement, the level of 90 does not seem far away now.
Market boom, crude oil fall
- Meanwhile, the dollar index, which measures the dollar’s strength against six currencies, rose marginally by 0.01 percent to 100.18.
- In the international market, Brent crude oil of Gulf countries was trading at $ 62.50 per barrel with a decline of 0.10 percent in futures trading.
- On the domestic stock market front, Sensex rose 218.44 points to 85,450.36 in early trade, while Nifty rose 69.4 points to 26,137.55.
- According to exchange data, foreign institutional investors sold shares worth Rs 1,766.05 crore on a net basis on Friday.
- RBI said on Friday that India’s foreign exchange reserves increased by $ 5.543 billion to $ 692.576 billion during the week ended November 14 due to a huge increase in the value of gold reserves.