There are ups and downs going on in the Indian stock market these days. On the other hand, the dollar is gaining strength. The reason for the strengthening of the dollar is Donald Trump’s statement. Trump has promised to impose new taxes on goods coming from Canada, Mexico and China. Due to this, the price of dollar has increased, which has put pressure on the Indian market.
Earlier on Monday, the Indian stock market had performed brilliantly. Sensex rose 1,961 points to close at 80,109, and Nifty also rose 314 points to close at 24,221.
American market impact
The market performed well in America on Monday. The Dow Jones Industrial Average rose 439 points to close at 44,735. Slight gains were also seen in Nasdaq and S&P 500. The Russell 2000 index of small stocks set a new record, but oil and energy sector stocks fell. This fall was due to the decline in oil prices. The effect of these changes can now be seen on the Indian market also.
rise in dollar
Donald Trump’s new tax proposals have strengthened the dollar. Trump said that he will impose heavy taxes on goods coming from Canada, Mexico and China from day one. After this news, the dollar strengthened by 2% against the Mexican peso and also against the Canadian dollar. The value of the dollar also increased against the Chinese yuan and other foreign currencies. The strength of the dollar has increased the pressure on the Indian rupee.
Fall in oil and gold prices
Oil prices have fallen. The prospect of a peace deal between Israel and Hezbollah pushed oil prices lower. Brent crude became $ 72.73 per barrel. The price of gold also fell to $ 2,621 per ounce. All these events will have an impact on the Indian stock market in the coming days, hence investors should be cautious while trading in the market.