By Admin 
Dollar vs Rupee: Last year there was a huge fall in the Indian rupee and the beginning of the new year was also not very good for the rupee. The rupee had historically crossed 91 against the US dollar. Investors remained scared due to high tariffs imposed by America and global uncertainties, due to which the pressure on the rupee increased further. However, meanwhile, a statement by US President Donald Trump has given some relief to the Indian currency and has indicated new enthusiasm in the market.
Why did the rupee get excited?
Donald Trump has said that America is going to make a big deal with India soon. Along with this, he also made it clear that he does not intend to impose any new tariff on European countries regarding Greenland. This statement is being seen as a sign of reduction in geopolitical tension, whose direct impact was visible on the rupee and the stock market.
After Trump’s statement, the rupee opened 15 paise stronger at 91.50 per dollar in early trade on Thursday. This rise has come at a time when the rupee had reached its historical low just a day earlier. On Wednesday, the rupee fell by about 68 paise and went above 91.65, which is considered to be the all-time low. Global uncertainty and increased demand for dollars were said to be the main reasons behind that decline.
According to Forex traders, Trump’s announcement in Davos to cancel possible tariffs imposed on eight European countries regarding Greenland has boosted investor confidence. Apart from this, positive trend in domestic stock markets also supported the rupee and it was seen strong in early trade.
stock market boom
Its effect was clearly visible in the stock market also. In early trade, BSE Sensex rose 533.37 points to 82,443, while NSE Nifty was seen trading at 25,314.70 with a gain of 157.20 points. During this period, the dollar index, which shows the strength of the dollar against six major currencies, increased by 0.02 percent to 98.78. In the international market, the price of Brent crude also increased by 0.17 percent to reach $ 65.35 per barrel.
However, the attitude of foreign institutional investors is still not completely positive. According to stock market data, foreign institutional investors were sellers on Wednesday and sold shares worth a net Rs 1,787.66 crore. Despite this, Trump’s statement and signs of easing in global tensions have brought relief to the rupee and domestic markets.
Also read: Trump praised PM Modi in Davos; Hints given on India-America trade deal, know details