By Admin 
Dollar vs Rupee: After US President Donald Trump’s statement that the war related to Iran may end soon, there are signs of relief in the global markets. The same effect was also seen on the Indian currency. On Tuesday, the third trading day of the week, Indian Rupee recovered from its all-time low and strengthened by 7 paise to reach the level of 92.14 per dollar.
In the interbank foreign exchange market, the rupee opened at 91.92 per dollar and within a short time started trading at 92.14 per dollar. This shows a strength of 7 paise compared to the previous closing level. Earlier on Monday, the rupee fell by 39 paise and closed at 92.21 against the United States Dollar, which was its lowest closing level till date.
Why did the rupee strengthen?
There was heavy pressure on the rupee in the last session due to the rise in crude oil prices in the global market and the strengthening of the dollar. However, on Tuesday, rupee got support due to weakness in dollar and strong start in domestic stock market. Global oil benchmark Brent Crude fell 4.69 percent to $ 94.32 per barrel in futures trade. At the same time, the US Dollar Index, which shows the position of the dollar against six major currencies, fell by 0.26 percent to 98.92.
A rise was also seen in the domestic stock market. In early trade, BSE Sensex rose 809.57 points to 78,375.73, while Nifty 50 was trading 252.75 points higher at 24,280.80. However, the rise of the rupee remained limited due to selling by foreign institutional investors.
What do experts say?
According to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, the rupee had reached its all-time low on Monday. But when the G7 countries indicated that they could use their strategic oil reserves to stabilize the oil market, oil prices fell.
He said that apart from this, the market also got relief from Donald Trump’s statement that the war may end soon. Also, signs of relaxation in some economic sanctions imposed on Russia and possible steps to reduce oil prices also supported the market. According to Bhansali, in the current situation it is expected that the Indian Rupee may remain in the range of 91.50 to 92.10 per dollar.
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