Rupee holds strong against dollar
In the currency market, the rupee has done tremendous amazing, which stopped speaking of the dollar. The rupee has shown a boom for the fourth consecutive day. Yesterday the rupee initially saw a little pressure, but then closed at 87.07 (provisional), up 6 paise against the US dollar. Today i.e. on Thursday too, the rupee made a tremendous comeback and reached 86.93 in the beginning to 86.93. This means that now you have to pay less money to buy a dollar. The reason for this strength of the rupee is believed to be the growth of the domestic stock market and the positive atmosphere created worldwide. Traders say that there is hopes of peace between Russia and Ukraine, which has increased the trust of investors and it has had a direct impact on the price of the rupee.
Rupee broke last blockage
The rupee has managed to break the last obstruction again. In the foreign exchange market, the rupee started the day with 87.04, but soon strengthened and reached 86.93. It closed at 87.07 on Wednesday. Experts say that if the rupee falls below 86.95, then it can be stronger to 86.80. But if then goes up to 87.10, then it can also reach 87.40. Amit Prabari, MD, CR Forex Advisors, says, “The dollar is still strong worldwide and foreign investors are also withdrawing money, there is a little pressure on the rupee. But there is a slight softening in relations between India and China recently, which can support the money.”
India-China friendship strengthened money
Another major reason behind the strength of the rupee is also a conversation between India and China. Recently, Chinese Foreign Minister Wang Yi came to India. He gave National Security Advisor Ajit Doval and External Affairs Minister S.K. Talked to Jaishankar. China’s Foreign Ministry said that both countries have created a new understanding of the border and have agreed to increase mutual cooperation. Apart from this, there has also been talk of working together on the big issues of the world. This gave the market a clear message that the relations between India and China are improving, which is a good sign for the rupee.
America’s fed policy will determine the trick
Now everyone’s eyes are on America’s Fede policy. The rupee is still strong, but the further move will depend a large extent on America’s decisions. The next meeting of the US Federal Reserve (Fed) is scheduled to be held on 16-17 September. Before that, this Friday will give his speech at Fed Chairman Jerome Powell Jackson Hole. If Powell gives strict statements in contrast to the expectation of reducing interest rates, then the dollar can be strong again, which will also affect the rupee.
Meanwhile, the dollar index which shows the dollar strength against the world’s 6 big currencies has increased by 0.08% to 98.30. Talking about oil, the price of Brent crude has increased by 0.37% to $ 67.09 per barrel. The reason behind this is the ban on Russia on Russia and a huge shortage of crude oil reserves in America.