By Admin 
Dollar vs Rupee: The trend of decline in the Indian rupee against the dollar now seems to be stopping. On Monday, April 6, the rupee reached the level of 93 against the US dollar. Today, a good recovery is being seen in the rupee from the closing price of 93.10 on Thursday (April 2). Due to the strict steps taken by the Reserve Bank of India (RBI), the rise of the rupee has continued since last week. Last week, the rupee had appreciated by 1.8 percent, which is its biggest weekly gain in more than four years.
RBI’s strictness showed its effect
Due to the new currency directive of the Reserve Bank of India, the rupee is strengthening, which has changed the entire equation of the forex market. The Reserve Bank has imposed strict restrictions to stop betting in the foreign exchange market. Under this, a limit of net open position in forex trade has been fixed at $100 million. Earlier, traders and corporates often placed big bets on the fall of the rupee. Due to this, the rupee used to fall more rapidly, but now with the setting of a limit of 100 million dollars, we will be able to place ‘bearish bets’ within the fixed limit.
The demand for dollars used to increase in the market by betting on weak rupee and future demand of dollar, but now the Reserve Bank has abolished this position limit. Due to this strict limit of RBI, traders or banks who were holding more dollars than this, started selling dollars. Fewer buyers and excess supply reduced demand for dollars, thereby strengthening the rupee.
30 billion dollar pressure
Quoting market experts, Bloomberg has said in its report that Indian and foreign banks (Offshore Banks) had positions worth $ 30 billion, which were open for speculation or arbitrage trades. Due to not being able to bet on the fall of the rupee, these positions are being unwinded. With the closing of positions, selling of dollars is increasing and rupee is getting support.
Also read:
The company making ‘Ramayana’ created a stir in the stock market! Gave 3 times return in 1 year; investor rich