Even though there was a big fall of 60 paise in the rupee against the dollar on Wednesday, but on Thursday the crude oil prices completely failed the dollar’s plan and the rupee played a tremendous role in the currency market. If we look at the figures, there has been an increase of 26 paise in the rupee against the dollar. The main reason for which is the fall in crude oil prices. Although the dollar index is flat, investment by foreign investors in the bond market has also been seen supporting the rupee. For this reason, the rupee has once again recovered from the level of 95 against the dollar. Let us also tell you what kind of figures are being seen in the currency market.
Crude oil supported the rupee
Due to fall in crude oil prices in early trade on Thursday, the rupee strengthened by 26 paise to 94.90 against the US dollar. Forex traders said the rupee had a positive start as crude oil prices returned to pre-Military conflict levels. Global risk sentiment has also stabilized compared to the panic seen a few weeks ago. He said foreign investors invested about US $ 5.3 billion in the Indian bond market during June, which was the first month of positive inflows after three consecutive months of outflows.
There was a rise of 26 paise
At the interbank foreign exchange market, the rupee opened at 94.95, then rose to 94.90 against the US dollar, registering a rise of 26 paise over its previous close. On Wednesday, the rupee had weakened by 60 paise and closed at 95.16 against the US dollar. Amit Pabari, MD, CR Forex Advisors, said that as new foreign money starts flowing into India, the market believes that the RBI may continue to absorb a large part of this inflow rather than allowing the rupee to strengthen completely.
Pabari further said that despite positive FII inflows and low crude oil prices, the rupee weakened sharply. If Rupee fails to strengthen even on good news, any negative event could easily push USDINR towards 95.8096.00 zone. He said that at the moment, the trend remains upward, while 94.80 is likely to act as an important support level.
stock market boom
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, was trading at 101.38, 0.01 per cent lower. At the same time, global oil benchmark Brent crude was trading 1.13 percent lower at $ 70.76 per barrel in futures trade. Talking about the domestic equity market, Sensex rose 377.40 points to 77,269.54 in early trade, while Nifty rose 106.70 points to 24,113.25. According to exchange data, foreign institutional investors sold shares worth Rs 1,140.50 crore on a net basis on Wednesday.
Leave a Reply