Crisis on crude oil and dollar, rupee showed such strength for the third consecutive day

Crude oil prices and dollar index are seen falling in the international market. Due to which there is a tremendous rise in the rupee against the dollar. If we look at the data, the rupee is rising against the dollar for the third consecutive day. In these three days, the rupee has seen an increase of more than 1.50 percent against the dollar. According to experts, the rupee seems to be getting support due to expectations of end of Iran war and positive news regarding India’s trade deal with America. On the other hand, due to fall in the prices of crude oil in the international market, the rupee is gaining momentum. According to experts, if similar rise is seen in the rupee then it may be seen at the level of 93.50 against the dollar. Let us also tell you what kind of data is being seen regarding the rupee in the currency market.

Rupee increased by 40 paise

In early trade on Monday, the rupee strengthened by 40 paise to 95.20 against the US dollar. The reason for this was the expectation that America and Iran were getting closer to a peace agreement, even though differences remained between them on important issues like the blockade on the Strait of Hormuz. The rupee opened on a positive note as the US and Iran “substantially completed negotiations” on a peace deal to end their nearly three-month-long war, forex traders said. US President Donald Trump has told negotiators not to “rush into any deal” and “both sides should take their time and do it right.” Additionally, US Secretary of State Marco Rubio said the US and India are on the verge of finalizing an interim trade deal. The development comes after the US Trade Representative is scheduled to visit India soon.

Increase of 166 paise in three days

At the interbank foreign exchange market, the rupee opened at 95.36 against the US dollar, and then touched 95.20 in early trade, 40 paise higher than its previous close. On Friday, the rupee had strengthened by 75 paise to close at 95.60 against the US dollar. The special thing is that the rupee has seen an increase of more than 1.70 percent in three consecutive trading days. If we look at the data, on Wednesday last week the rupee was at a life time low of 96.86 against the dollar. Since then it has seen a rise of Rs 1.66. If experts are to be believed, further appreciation in the rupee may be seen.

market situation

1. Meanwhile, the dollar index – which measures the strength of the US dollar against a basket of six currencies – was trading at 99.04, down 0.20 per cent.
2. In the international market, Brent crude, the global benchmark of oil, was trading at 97.92 USD per barrel, falling 5.43 percent in futures trade.
3. Talking about the domestic equity market, in early trade the Sensex jumped 908.98 points to 76,317.85, while the Nifty rose 262.65 points to 23,977.70. On the other hand, according to exchange data, foreign institutional investors sold shares worth Rs 4,440.47 crore on a net basis on Friday.
4. Meanwhile, the Reserve Bank of India (RBI) said on Friday that the country’s foreign exchange reserves declined by 8.094 billion USD to 688.894 billion USD during the week ending May 15. In the last week which ended on May 8, the total reserves had increased by 6.295 billion USD to 696.988 billion USD.

What do experts say?

Anil Kumar Bhansali, Treasury Head and Executive Director, Finrex Treasury Advisors LLP, said that this trade agreement will be beneficial for both America and India. Bhansali further said that due to the holiday in America today, the demand for cash will be less, but the demand may increase at the end of the month. At the same time, RBI will be present to keep an eye on the dollar. Rubio said on Sunday that India and the US are ready to soon finalize the much-awaited trade agreement, which will be both “beneficial” and “durable”, and will advance the mutual interests of both the countries. He stressed that overall there will be momentum in bilateral relations. Rubio, who is currently on a four-day visit to India, met External Affairs Minister S. Made these comments after extensive talks with Jaishankar. The main focus of this conversation was on promoting bilateral cooperation in areas like trade, critical minerals, energy and defence.