By Admin 
Dollar vs Rupee: Amid fluctuations in global markets, the Indian rupee strengthened on Wednesday. On the third trading day of the week, the rupee rose by five paise to reach 90.67 per dollar in early trade. The fall in crude oil prices and inflow of foreign capital supported the domestic currency.
Why the rise in rupee?
In the interbank foreign exchange market, the rupee opened at 90.60 and later fell to 90.67, showing an increase of five paise over the previous closing price. On Tuesday, the rupee had strengthened by two paise and closed at 90.72 per dollar. However, a strong US dollar and slight fall in domestic stock markets limited the rise of the rupee.
The dollar index rose 0.10 percent to 97.24. There was slight weakness in the domestic stock markets. Sensex was seen falling 77 points at 83,373 and Nifty was seen slipping 26 points at 25,699.
In the international market, Brent crude fell by 0.36 percent to $ 68.40 per barrel, which supported the rupee. According to stock market data, foreign institutional investors (FIIs) remained buyers on Tuesday and bought shares worth Rs 995.21 crore, which gave additional strength to the currency.
What do experts say?
According to Anuj Chaudhary, research analyst at Mirae Asset Sharekhan, due to the strength of the dollar and fluctuations in capital flows, the rupee may see trading in a limited range. However, positive signals from domestic markets and softening of crude oil have curbed the decline. He estimates that investors will keep an eye on the US housing market and GDP data this week, and the dollar-rupee spot rate may remain between 90.50 to 91.
Overall, fall in crude oil prices and FII buying have strengthened the rupee, but global factors and movement of the dollar will decide the further direction.
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