Rupee rises for the second consecutive day, dollar collapses in currency market

On Wednesday, the rupee strengthened by 14 paise and closed at 95.27 (provisional) against the US dollar. It is believed that the Reserve Bank of India (RBI) intervened to prevent excessive fluctuations and prevent further decline in the domestic currency. Forex traders said the rupee recovered from its early losses and closed on a positive note as Brent crude oil prices and the US dollar index came down from higher levels. Apart from this, possible intervention by the Reserve Bank of India (RBI) also supported the domestic currency at lower levels. However, the rupee has seen a rise for the second consecutive day. Let us also tell you what kind of figures have been seen in the currency market…

Currency market rises for the second consecutive day

At the interbank foreign exchange market, the rupee opened at 95.52, then touched an intraday high of 95.07 and low of 95.56 against the US dollar. The rupee finally closed at 95.27 (provisional), showing an increase of 14 paise over the previous closing price. On Tuesday, the rupee strengthened by 20 paise and closed at 95.41 against the US dollar. This means that the currency market has seen a rise of 34 paise in two days. Forex traders said the rupee remained stable as markets awaited US CPI data amid escalating US-Iran tensions. According to traders, the Indian rupee is under heavy pressure due to renewed geopolitical tensions in West Asia. He said that since India is heavily dependent on energy imports, any surge in global crude oil prices directly widens the trade deficit and weakens the domestic currency.

From oil to stock market

1. Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, was trading at 99.87, down 0.04 per cent.
2. Brent crude, the global oil benchmark, was trading 0.32 percent lower at US$91.16 per barrel in futures trade.
3. In the domestic equity market, Sensex closed marginally higher by 64.42 points at 73,983.18, while Nifty fell by 27.15 points at 23,214.95.
4. According to exchange data, foreign institutional investors sold shares worth Rs 4,566.03 crore on a net basis on Tuesday.
5. Meanwhile, Indian government bond yields have fallen sharply in the last four days. The benchmark 10-year yield fell 0.10 per cent as inflows from foreign portfolio investors (FPIs) increased following recent tax relief measures by the government for debt investments.

investing in money market

The United States retaliated against Iran after an American Apache helicopter was downed near the Strait of Hormuz. In response, Iran’s Islamic Revolutionary Guard Corps (IRGC) launched retaliatory drone and long-range missile strikes targeting US targets across the region. Money market experts believe that the reason for the decline in yield on government securities is the huge investment of Rs 11,026.331 crore in these securities in the last four days by foreign investors under the ‘Fully Accessible Route’ (FAR). FAR allows non-resident investors to invest in fixed-term securities of the Government of India without any investment limit.