There has been a tremendous rise in the rupee against the dollar.
A big relief news has come from the foreign exchange market on Friday. The Indian rupee, which is facing huge pressure, has registered a great comeback against the US dollar. This is the biggest single day jump of the rupee in the last two months. On Friday, the rupee strengthened by 0.73 percent and closed at Rs 95 per dollar. The main reasons behind this tremendous recovery are the fall in crude oil prices and the possible intervention of the Reserve Bank of India (RBI). With this rise, the Indian currency became the best performing currency in Asia on Friday.
Sanjeevani found due to fall in crude oil prices
The rupee has got this strength mainly from the international market. In fact, there has been a huge decline of about 2 percent in the prices of Brent crude oil, bringing it down to around $91 per barrel. There is a big geopolitical reason behind the cheapness of crude oil. Such reports have emerged that the ceasefire agreement between America and Iran may move forward. Due to this, the movement of ships through the Strait of Hormuz is expected to become smooth again. This hope of improving the supply chain brought down the prices of crude oil, which directly benefited the Indian rupee. India imports a large part of its requirement, hence cheap oil provides relief to the country’s economy.
Reserve Bank’s silent action became a shield
Due to huge demand for dollars, there was continuous pressure on the rupee for some time. Foreign exchange dealers believe that the Reserve Bank of India has also played an important role in stopping this decline. According to market experts, on the instructions of RBI, public sector banks have sold huge quantities of dollars in the market. This strategic move reduced the demand pressure for the dollar, which helped the rupee to rise to the figure of 95 from the previous closing level of 95.70. This is the strongest level of rupee after May 8. This is the fastest one-day rise of the rupee after April 2 this year.
Best performance of rupee in entire Asia
Friday’s trading session was very good for the Indian currency. Due to this surge, the rupee became the best performing currency in the whole of Asia. After India, Thailand’s currency ‘Thai Baht’ was at second place, in which an increase of 0.37 percent was recorded. While on one hand the rupee was showing its strength, on the other hand there was disappointment in the domestic stock market. Due to profit booking by investors at the last moment, Sensex and Nifty 50 fell by about 1.5 percent. Apart from this, the country’s foreign exchange reserves have also declined to $ 681 billion, which is the lowest level in more than a year.
