By Admin 
Dollar vs Rupee: The Indian rupee once again witnessed a rise on the last trading day of the week. On Friday, the rupee strengthened by two paise to reach 91.62 against the US dollar. The rupee got support due to the US giving 30 days exemption to Indian refineries to buy Russian oil amid the ongoing war in West Asia. Forex traders say that despite the fall in the American currency, the negative trend of domestic stock markets and withdrawal of foreign funds limited the rise of the rupee.
In view of the increasing tension between America, Israel and Iran, the US administration has given a temporary exemption of 30 days to allow Indian refineries to buy Russian oil. According to foreign exchange analysts, the Reserve Bank also intervened to save the local currency from the uncertainties and extreme fluctuations created by the ongoing war between America, Israel and Iran. However, the strengthening of the dollar, rising crude oil prices and huge withdrawal of foreign institutional investors have kept the rupee under pressure.
Why the strengthening of rupee?
In the interbank foreign exchange market, the rupee opened stronger as compared to its previous closing price of 91.64 and was seen trading at 91.62 against the dollar with a gain of two paise. After falling by 97 paise in the last two sessions, the Indian rupee recovered by 41 paise to close at 91.64 per dollar on Thursday. Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, fell 0.37 per cent to 98.94. Meanwhile, global oil standard Brent crude fell 1.05 percent to $84.51 per barrel in futures trade.
What do experts say?
According to Sameer Karyat, Executive Director and Head of Trading, DBS Bank India, geopolitical tensions in West Asia have had a significant impact on the Indian rupee. Concerns over crude oil supply and rising prices have put pressure on the rupee exchange rate.
He said that in the current uncertain environment, the inclination of investors has increased towards safe assets, due to which the pressure on the rupee has increased further. For this reason, there has been a decline of about 1.4 percent in the exchange rate of rupee this week.
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