By Admin 
Rupee vs Dollar: Today, the rupee has once again taken a huge leap against the US dollar. Due to fall in crude oil prices and foreign investors, the rupee rose by 14 paise to a one-month high of 87.88 against the US dollar in early trade on Monday (October 20).
The rise in the domestic stock market is also responsible for the continuous strengthening of the rupee. In the Interbank Foreign Currency Market, the rupee opened strongly at 87.94 and remained in a limited range due to limited business. In early trade, the rupee reached a low of 87.95 and a high of 87.88. Later, the rupee was trading at 87.88 against the US dollar, which is 14 paise higher than the previous closing price. On Friday (October 17), the rupee had closed at 88.02 against the US dollar.
Stock market will remain open today
Both stock market and currency market will remain open on Monday (Monday 20). According to the information of BSE and NSE, a special Muhurat trading session will be held in the stock markets from 1.45 pm to 2.45 pm on Tuesday (Monday 21) for Lakshmi Puja. Meanwhile, the dollar index, indicating the strength of the dollar against six currencies, rose by 0.02 percent to 98.45. Global oil benchmark Brent crude fell 0.31 percent to $ 61.10 per barrel in futures trade.
On the domestic stock market front, in early trade on Monday (October 20), Sensex rose by 668.88 points or 0.83 percent to reach 84,621.07 points, while Nifty rose by 202.25 points or 0.79 percent to reach 25,912.50 points.
Foreign investors reduced selling
Experts say that the capital market is being affected by the news of continuous buying by domestic institutional investors (DII), minor buying by foreign investors (FII) and strong sales of automobiles and household items during the festive season.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said, “There is a slight change in the activities of foreign institutional investors (FIIs) in recent times. Foreign institutional investors (FIIs) have significantly reduced their selling and have also become buyers in recent times.”
benefit of strengthening rupee
The biggest advantage of strengthening rupee is that it reduces the import bill. In such a situation, the prices of electronics goods, crude oil and other imported items reduce. This makes it easier to control inflation. A strong rupee attracts foreign investment, which promotes investment in the country. Government reserves do not decrease due to less expenditure on imports. Repayment of foreign loans becomes easier and fiscal deficit is reduced.
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