By Admin 
Rupee vs dollar: Amidst the global turmoil and tariff tension, the Indian currency came to a new life on Wednesday and the rupee climbed 9 paise from its lower level to close at 88.06 against the dollar. Forex traders say that factors were responsible for the positive trend of the domestic stock market, softening of crude oil prices and weakness of US dollars.
New passion in rupee
In fact, due to the ongoing trade tariff tension between India and America, foreign capital is continuously withdrawing, due to which the rupee had gone to its lowest level. On Tuesday, the rupee closed at 88.15 per dollar, which was the minimum level so far. On Wednesday, the rupee opened at 88.15 in the Interbank Forex Exchange Market and during the trading continued to fluctuate between a low of 88.19 and high levels of 87.98. It closed at 88.06 per dollar at the end of the day.
According to Anuj Chaudhary, Chief analyst of Mirae Asset Sharekhan, the strength of domestic stock markets and the fall in crude oil prices supported the rupee. However, Indo-US trade can remain pressure on the rupee in view of the selling of trade tension and FII.
Why does the rupee rise?
Meanwhile, the dollar index fell 0.20% to 98.19. The Sensex in the domestic stock market strengthened 409.83 points at 80,567.71 and the Nifty rose by 135.45 points to close at 24,715.05. At the same time, the price of Brent crude fell 1.66% to $ 67.99 per barrel. The FII purely sold shares worth Rs 1,159.48 crore on Tuesday.
Significantly, the fall in the rupee has come at a time when there is a continuous trade tension between India and America. The withdrawal of foreign capital and the strength of the dollar has put pressure on the rupee. Meanwhile, taking a big step towards economic reform, the Government of India has announced the GST reform. The GST Council meeting has started from Wednesday and big decisions like simplifying the tax slab are being discussed.
The results of this meeting are expected to appear on September 4. It is believed that the government can make a big change in the GST structure with the aim of giving great relief to the general public, middle class and small businessmen before Diwali.
Also read: Services PMI reached 15 months top in August, Composite PMI also jumped and reached 63.2