There has been an increase in the currency market for the third consecutive day. The special thing is that the rupee has improved from 90 to the level of 89 against the dollar. In three days, the rupee has strengthened by 1.25 percent from its record low. According to experts, the rupee is rising due to the intervention of RBI. At the same time, the prices of crude oil in Gulf countries have fallen below $60. At the same time, due to investment by foreign investors, there has been an improvement in the rupee. Apart from this, the situation has also improved after FTA with Oman. However, the crisis for the rupee has still not subsided. No agreement has been reached on trade deal with America. The impact of American tariffs still persists. Let us also tell you what kind of data is being seen in the currency market.
Hat-trick of rise in rupee
The rupee strengthened by 24 paise to 89.96 against the US dollar in early trade on Friday. Rupee strengthened due to inflow of dollars from companies and softening of crude oil prices. Foreign currency traders say that this strengthening of the US dollar / Indian rupee pair has come after the rupee continuously reached record low levels in recent weeks due to possible intervention of the Reserve Bank of India. Apart from this, the market environment remained positive as the crude oil prices remained at around US$ 59 per barrel.
Rupee strengthened from 90
In the interbank foreign exchange market, the rupee opened at 90.19 against the US dollar, then strengthened slightly and reached 89.96, which is 24 paise higher than the previous closing price. In early trading it also reached 90.22 against the American currency. On Thursday, the rupee strengthened by 18 paise and closed at 90.20 against the US dollar. On Tuesday, the rupee reached a new record low and crossed the level of 91 per dollar for the first time. However, the rupee has strengthened by 1.25 percent from Tuesday’s record low level.
There may be ups and downs
Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said there has been a slight decline in buying of the US dollar due to speculators being out of the market, although there may be fluctuations during the day. Bhansali further said that the US CPI was lower than expected, but this was also due to lack of collection of sufficient data, hence next month’s CPI becomes more important. He also said that the rupee remains in the range of 90-90.50.
Crude oil is cheap and the market is booming.
- Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, was trading 0.04 per cent higher at 98.46.
- Global oil benchmark Brent crude was trading 0.27 percent lower at US $ 59.66 per barrel in futures trade.
- Talking about the domestic stock market, the 30-share benchmark index Sensex rose 375.98 points to 84,857.79, while Nifty rose 110.60 points to 25,934.15.
- According to exchange data, foreign institutional investors bought shares worth Rs 595.78 crore on Thursday.
no worries about money
Meanwhile, Prime Minister’s Economic Advisory Council (EAC-PM) member Sanjeev Sanyal on Thursday said he was not worried about the rupee as China and Japan had also seen exchange rate weakness during their high growth periods. Speaking at an event, Sanyal said the rupee has mostly been allowed to fall to its level since the 90s, but the RBI uses its reserves to prevent excessive volatility. He said that I am not at all worried about the rupee… What I want to say is that the rupee and its current weakness should not necessarily be linked to any economic concern, because historically, if you look over time, you will find that economies which are in their high growth phase often go through periods of exchange rate weakness.
