By Admin 
Rupee vs Dollar: After slipping beyond the record level of 91, the Indian Rupee now seems to be recovering due to the intervention of the Reserve Bank of India (RBI), foreign capital inflows and strength in the domestic stock markets. The rupee rose by 22 paise to 89.45 against the US dollar in early trade on Monday, indicating in the market that the pressure on the currency has reduced to some extent after the recent fall.
Why is the rupee strengthening?
According to forex traders, investment in dollars by corporate companies, net buying in the stock market by foreign institutional investors and stability of crude oil prices around $ 60 per barrel have become positive factors for the rupee.
In the interbank foreign exchange market, the rupee opened at 89.53 and gradually strengthened to reach the level of 89.45, whereas in the previous trading session it had closed at 89.67 with a gain of 53 paise. The dollar index, which reflects the position of the dollar at the global level, remained almost stable at 98.63, which has also provided some relief to the currencies of emerging economies.
A positive atmosphere was also seen in the domestic stock markets, where the Sensex rose by more than 210 points to reach the level of 85,139 and the Nifty was also seen trading above 26,121 with a rise of 154 points.
stock market boom
According to market data, foreign institutional investors made net purchases of about Rs 1,830 crore in the last session, which supported both the rupee and the stock market. Overall, due to the active role of RBI, support of foreign investment and stability in global indicators, the Indian Rupee currently appears to be in a strong trend, although its further direction will depend on the global economic conditions and capital flows.