Dollar fall
US President Donald Trump has once again started the tariff war. On Monday night, Trump announced 25 percent tariffs on Japan and Korea, after which the US stock market saw a sharp decline. Which has also affected the dollar today and the rupee has once again adopted a strong position and defeated Trump’s dollar.
Globally, the rupee rose 26 paise to close at 85.68 (temporary) against the US dollar on Tuesday due to a fall in crude oil prices and weakening of the dollar. According to foreign exchange traders, the increase in investment of foreign funds and strong domestic stock market strengthened the rupee.
India’s rupee became so strong
The rupee opened at 85.75 against the US dollar in the Interbank Forex Exchange Market and closed at 85.68 (temporary) after trading within a limited range of 85.64–85.80, which has a growth of 26 paise in the previous closed price. On Monday, the rupee closed down 54 paise to close at 85.94 per dollar.
Anil Kumar Bhansali, Treasury Head and Executive Director of Finrex Treasury Advisors LLP, said, “Today (Tuesday), the rupee remained in a limited scope with the possibility of completion of the US-India (agreement), and showed a boom. A decisive small trade agreement can once again reach the level of 85.30/40. He said that tonight, with the expectation of some positive developments, the local currency is expected to be within 85.30-86.00 on Wednesday.
Crude oil declines, stock market gains
Global oil standard, Brent crude prices fell by 0.55 percent to $ 69.20 per barrel in futures trading. The dollar index measuring the strength of the dollar compared to six global competitive currencies declined by 0.18 percent to 97.30. Meanwhile, the BSE Sensex based on 30 shares of the domestic stock market rose 270.01 points to close at 83,712.51 points. At the same time, the Nifty was 25,522.50 points with a profit of 61.20 points.
According to exchange data, foreign institutional investors (FIIs) remained pure buying in the capital market. He bought shares worth Rs 321.16 crore on a pure basis on Monday.