By Admin 
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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