Dollar vs Rupee: The Indian rupee got some relief on Thursday amid the Iran war and continuously rising crude oil prices. After falling in the last two trading sessions in the domestic stock market, the rupee recovered from its lowest level in early trade today due to a very positive environment. The rupee strengthened by 48 paise to reach 91.57 against the US dollar.

Why did the rupee rise?

According to Forex Traders, selling by foreign investors is continuing amid high crude oil prices, strengthening of the American currency and increasing tension in West Asia, due to which there is heavy pressure on the Indian currency. The rupee opened at 92.16 in the Interbank Foreign Exchange Market. During trading it reached a high of 91.30 against the US dollar and was later trading at 91.57. In this way the rupee remained 48 paise stronger than the previous closing level.

A day earlier, on Wednesday, the rupee had fallen 56 paise against the US dollar and closed at its all-time low of 92.05. Meanwhile, the US Dollar Index, which shows the strength of the dollar against six major currencies, increased by 0.20 percent to 98.93.

According to stock market data, foreign institutional investors (FIIs) sold shares worth a net Rs 8,752.65 crore on Wednesday.

What do experts say?

Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP, said that the increasing conflict in West Asia and the rise in crude oil prices have dampened the enthusiasm of investors. High oil prices can increase both inflation concerns and fiscal pressure for a big importing country like India.

Strength was seen in the domestic market and at 9.17 am, Nifty 50 was trading at the level of 24,642.30, up by 162 points or 0.66 percent, while BSE Sensex rose by 521 points to reach the level of 79,636.89.

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Rupee vs Dollar: The biggest ever fall in the Indian Rupee has been witnessed amid the presentation of the Economic Survey in the Parliament just before the Union Budget. In early trade on Thursday, the rupee fell to 92.00 against the US dollar, which is its historical low. There is pressure on the domestic currency due to the continued strong demand for the dollar and the cautious environment at the global level.

Why such a huge fall in the rupee?

According to forex traders, increasing geopolitical uncertainties have increased risk aversion among investors, which is having a direct impact on the currencies of emerging markets. The rupee opened at 91.95 per dollar in the interbank forex market and slipped to 92 at the end of the month due to increased demand for the dollar.

A day before this, on Wednesday also, the rupee had fallen by 31 paise and closed at the level of 91.99, whereas on January 23, it had reached the level of 92 for the first time. During this period, the dollar index, which shows the strength of the dollar against six major global currencies, fell by 0.29 percent to 96.16.

Stock market fell with a bang

Weakness was also seen in the domestic stock market, where Sensex fell 343.67 points to 82,001.01 and Nifty slipped 94.2 points to 25,248.55 in early trade. In the international market, the price of Brent crude increased by 1.32 percent to $ 69.30 per barrel. However, according to stock market data, foreign institutional investors (FIIs) remained buyers on Wednesday and bought shares worth a net Rs 480.26 crore.

Analysts said the rupee had started higher amid weakness in the dollar index, but fell to its lowest level at the end of the month due to demand for the dollar and poor investor sentiment.

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Rupee vs Dollar: After reaching record low, the Indian rupee strengthened for the second consecutive day. The rupee rose by 17 paise to reach 91.41 against the US dollar in early trade on Friday. Investor confidence has increased after US President Donald Trump backed down from his threat of imposing tariffs against Europe over the Greenland issue, reducing fears of an immediate trade war.

According to foreign exchange traders, Trump’s soft stance has reduced near-term geopolitical concerns and improved the risk appetite of investors, the effect of which was also seen on the currencies of emerging markets.

How to strengthen rupee?

In the interbank foreign exchange market, the rupee opened at 91.45 per dollar and strengthened during trading to reach the level of 91.41, which is 17 paise stronger than the previous closing price. On Thursday, the rupee had closed at 91.58 against the dollar. Meanwhile, the dollar index, which gauges the dollar’s position against six major global currencies, stood at 98.36 with a marginal rise of 0.01 per cent.

Amit Pabri, managing director of CR Forex Advisors, believes that at current levels the rupee has already priced in a large portion of the global risk. In a research report, he said that in such a situation, there may be stability in the market for some time in future. If risk sentiment improves globally and investor confidence returns, there remains scope for a limited but positive correction in the rupee.

stock market weakness

According to Pabri, the level of 92.00 against the dollar has emerged as a strong resistance for the rupee. At the same time, due to the continuous support from the Reserve Bank of India (RBI), the dollar/rupee exchange rate is expected to remain in the range of 90.50 to 90.70 in the near term. This indicates that after the recent instability, there is less possibility of a major fall in the rupee.

A mixed trend was seen in the domestic stock markets. Sensex fell 25.99 points to 82,281.38 in early trade, while Nifty gained 10.55 points to reach 25,300.45. Crude oil prices continued to rise in the international market and Brent crude was seen trading at $ 64.63 per barrel, rising by 0.87 percent. According to stock market data, foreign institutional investors (FIIs) were also sellers on Thursday and sold shares worth a net Rs 2,549.80 crore.

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Dollar vs Rupee: The direct effect of international tension is being seen on the Indian currency. On Monday morning, the first trading day of the week, the rupee weakened by 4 paise against the US dollar to 90.24 per dollar. Due to geopolitical uncertainties created by the US intervention in Venezuela, demand for dollars has increased, due to which there is pressure on the rupee.

Rupees weakening due to stress

According to foreign exchange traders, due to global tensions, the rupee may remain weak in the coming days. However, softening of crude oil prices may provide some relief.

On the other hand, the rupee opened at 90.21 in the interbank foreign exchange market and slipped to 90.24 in early trade. Whereas on Friday it fell by 22 paise and closed at 90.20. During this period, the dollar index, which shows the strength of the dollar against six major currencies, increased by 0.36 percent to 98.50.

stock market crash

Weakness was also seen in the domestic stock market, where the 30-point Sensex on BSE was trading 135.81 points down at 85,626.20 in early trade. Whereas, Nifty 50 on NSE also slipped 25.75 points to 26,302.80. Among the 30 Sensex companies, shares of HCL Tech, Infosys, Tech Mahindra, HDFC Bank, Tata Consultancy Services and NTPC saw the biggest decline, while shares of Bharat Electronics, Tata Steel, Axis Bank and Reliance Industries were seen trading with gains.

Talking about Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 and China’s SSE Composite index were in profit, while Hong Kong’s Hang Seng index closed with a slight decline. American stock markets closed with a positive trend on Friday, the effect of which was also visible on the global sentiment. Meanwhile, in the international market, Brent crude fell slightly by 0.08 percent and stood at $ 60.70 per barrel. According to stock market data, foreign institutional investors remained buyers on Friday and bought shares worth a net Rs 289.80 crore.

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