By Admin 
Dollar vs Rupee: While recovery was seen in the stock market a day after the presentation of the Union Budget, the rupee also strengthened. The rupee rose 37 paise to 91.56 per dollar in early trade on Monday. The sharp fall in crude oil prices has provided support to the domestic currency. According to foreign exchange traders, the rupee did not get any immediate relief from the budget, but the government’s policies have definitely given a kind of assurance to the market. However, investors’ sentiments are expected to remain under pressure due to the government’s higher borrowing plan in the next financial year.
Rupee strengthened
The government has estimated to borrow about Rs 17.2 lakh crore to meet the estimated fiscal deficit of 4.3 percent of GDP in the financial year 2026-27. In the interbank foreign exchange market, the rupee opened at 91.95 against the US dollar and gradually strengthened to 91.56 per dollar, which shows an increase of 37 paise over the previous closing price. Earlier on Friday, the rupee had slipped to a record low of 92.02 against the dollar, although it finally closed at 91.93 per dollar.
During this period, the position of the dollar in the global market also remained almost stable. The dollar index, which shows the strength of the dollar against six major currencies, stood at 97.08 with an increase of 0.10 percent. There was a big fall in the prices of crude oil in the international market and Brent crude fell by 4.14 percent to $ 66.45 per barrel, which gave relief to the currencies of importing countries like India.
Foreign investors increased concern
However, the activities of foreign investors have also increased some concern in the market. According to stock market data, foreign institutional investors (FIIs) appeared to be sellers after a long time and sold shares worth about Rs 588.34 crore. It is clear from this that there are signs of return of stability in the market after the budget, but the caution of foreign investors and the borrowing schemes of the government will play an important role in deciding the direction of the rupee and the market in the coming days.
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