By Admin 
Rupee vs Dollar: The Indian Rupee has returned strongly at the beginning of the new week after reaching a record low on the last trading day of last week. As soon as the market opened on Monday morning, the rupee showed a rise and strengthened by 49 paise to reach 89.17 per dollar. It opened at 89.46 in the morning, after which it saw a good recovery against the dollar. The softening of crude oil prices has supported the rupee, due to which the Indian currency has strengthened by almost half the rupee compared to the previous closing price.
Reason for strengthening of rupee
Last week, the demand for the dollar had intensified amid heavy selling and trade uncertainties in the global and domestic stock markets, due to which the rupee fell by 98 paise to close at an all-time low of 89.66 per dollar on Friday. The dollar index, which shows the strength of the dollar against six major currencies, remained with a slight gain at 100.18. Despite this, the rupee showed a strong comeback on Monday.
An initial upward trend was also seen in the domestic stock markets. BSE Sensex opened 218.44 points higher at 85,450.36, while NSE Nifty gained 69.4 points to 26,137.55. Improvement in the market also supported the rupee.
Effect of fall in crude oil prices
Brent crude prices fell by 0.10 percent to $ 62.50 per barrel. The softening of crude oil prices is considered positive for the rupee, as a major part of India’s total import cost is spent on oil.
Although foreign investors remain cautious—FIIs sold Rs 1,766 crore on Friday—the dollar’s weakness and fall in crude oil prices have provided some relief to the rupee.
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