Dollar again becomes enemy of rupee, currency market falls by 15 paise

The rupee fell 15 paise to 94.48 against the US dollar in early trade on Monday. The reason for this was the strengthening of the American currency in the foreign market. Forex traders said that fluctuations were seen in the rupee. A steady influx of loans and deposits was pulling the domestic currency in one direction, while tensions in the Middle East and a strong dollar were pulling it in the other. Let us also tell you what kind of figures are being seen for the rupee against the dollar…

decline in rupee

In the Interbank Foreign Exchange market, the rupee opened at 94.42, which was 9 paise less than the previous closing price. In early trading it also reached the level of 94.24 against the American currency. On Friday, the rupee lost most of its early gains and closed 7 paise higher at 94.33 against the US dollar. Amit Pabari, MD, CR Forex Advisors, said that technically, the range of 94.0094.20 remains an important support area, while the range of 94.8095.00 remains an immediate resistance band. With signs of improving credit flows and oil prices remaining largely stable, the Rupee is likely to strengthen, and USD/INR is expected to move towards the range of 94.0093.80.

Tension is increasing again

Globally, high-level talks on the Iran war ended in Switzerland on Monday. Now low-level talks will take place for the rest of the week, as Iran and the US have agreed to create a “de-confliction cell” to deal with the fighting in Lebanon. These talks marked the beginning of a 60-day diplomatic process aimed at reaching a permanent agreement to end the Iran war. Meanwhile, Iran insisted it had again closed the Strait of Hormuz over the weekend – a narrow mouth of the Persian Gulf that is vital for energy shipments – while the US said traffic had continued.

Situation from dollar to market

1. Meanwhile, the dollar index – which measures the dollar’s strength against a basket of six currencies – was trading 0.02 per cent higher at 100.87. This happened in the environment of strict stance of the Fed and weak trade deal between America and Iran.
2. Global oil benchmark Brent crude was trading 1.28 percent lower at $79.54 per barrel in futures trade.
3. Anil Kumar Bhansali, treasury head and executive director of Finrex Treasury Advisors LLP, said that as the talks between the US and Iran progressed, the price of Brent oil reached close to $ 79 per barrel, while Iran had closed the strait.
4. In the domestic equity market, Sensex rose 407.12 points to 77,210.02 in early trade, while Nifty rose 114.75 points to 24,129.95.
5. According to exchange data, foreign institutional investors made purchases on Friday and bought shares worth Rs 4,859.07 crore on a net basis.