Rupee improved against dollar, know what is the reason behind it

The rupee improved by 48 paise to close at 81.26 (provisional) against the US dollar. Traders said rising crude oil prices also affected the sentiments of traders.

The rupee improved by 48 paise to close at 81.26 (provisional) against the US dollar.

The rupee on Monday closed 48 paise higher at 81.26 (tentative) against the US dollar at the interbank foreign exchange market in view of the correction in the US currency and a sluggish trend in the domestic equity market. Traders said rising crude oil prices also affected the sentiments of traders.

The rupee opened with a strong trend at 80.53 in the interbank foreign exchange market. During the trading, the initial gains of the rupee disappeared and finally it closed at 81.26 per dollar, up 48 paise against the US currency. This shows a fall of 48 paise in the rupee compared to the previous trading session.

What are the experts saying?

On Friday, the rupee had improved by 62 paise to close at 80.78 per dollar. Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said the correction in the US dollar and a weak trend in the domestic markets led to the fall in the Indian rupee. He further said that, however, due to better microeconomic data, the rupee had opened higher.

Meanwhile, the dollar index, which shows the weakness or strength of the dollar against the world’s six major currencies, has gained 0.59 percent to 106.91.

Global oil benchmark Brent crude futures fell 0.63 per cent to $95.93 per barrel. At the same time, the 30-share Sensex of BSE closed at 61,624.15 points, down by 170.89 points. According to stock market data, Foreign Institutional Investors (FIIs) were net buyers in the capital market. He bought shares worth Rs 3,958.23 crore on Friday.

What is the effect of money on the lives of common people?

Let us tell you that the effect of rise and fall in rupee can be seen on common life. This is also being seen in the form of inflation rate in recent times. The weakening of the rupee reduces the effect of any shortage in the imported commodity from the international market. Because of this, it will take more time to reap the benefits of the fall in crude oil, as a depreciation in the rupee amid a fall in prices will increase the import bill and continue to burden the exchequer.

At the same time, the common man gets the benefit in that situation, when the commodity prices in the global markets will fall and the rupee comes in a strong position against the dollar. Common people get relief on the inflation front only when commodity prices fall in the global market and the rupee strengthens.

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