Even though the rupee is running above the 87 level in the dollar, but in the last two business days, the rupee has defeated the dollar quite well. Like Tuesday, on Wednesday, the whole world saw the roar of the rupee in the currency ring and the dollar was very much overwhelmed. Where on Tuesday, the rupee saw a rise of 12 paise. On the other hand, the rupee has closed up 20 paise on Wednesday. The major reason for this is the weakness of the dollar, the fall in crude oil prices and the decrease in inflation. By the way, foreign investors have not stopped withdrawing money from India’s stock market yet. Due to which the increase in the rupee has been seen slightly slow. Let us also tell you what kind of money figures have been seen in the currency market…
Rupee up against dollar
The rupee strengthened by 20 paise to close at 87.43 (temporary) per dollar on Wednesday due to weak dollar and positive attitude in domestic stock markets. Foreign currency traders said that the softening of crude oil prices and the decrease in domestic inflation supported the rupee, but the uncertainties on trade fee and withdrawal of foreign capital limited the boom of domestic currency. The rupee opened at 87.63 per dollar in the Interbank Foreign Currency Exchange Market. In the day, it continued to decrease between the low-lying level of 87.72 and the high level of 87.28 against the American currency. Finally it closed at 87.43 (temporary) per dollar, which is 20 paise with the previous closed price. The rupee closed at 87.63 against the US dollar with a gain of 12 paise on Tuesday.
Crude oil prices fall
Meanwhile, the dollar index, depicting the US dollar position against six major currencies, fell 0.44 percent to 97.66. In domestic stock markets, the Sensex rose 304.32 points to 80,539.91 points while the Nifty gained 131.95 points to close at 24,619.35 points. International standard Brent crude fell by 0.54 percent to $ 65.76 per barrel. According to the stock market data, foreign institutional investors (FIIs) were selling on Tuesday and purely sold shares worth Rs 3,398.80 crore.
Will the rupee increase further?
Research analyst of Mirae Asset Sharekhan’s commodity currency, Anuj Chaudhary said that the softening of inflation and the firmly in domestic markets increased the rupee. He said that we hope that the rupee would trade with a positive attitude due to the perception of risk in the global market and the weakening of the US dollar. The domestic currency can get further support due to softening in inflation and fall in crude oil prices.