Rupee Vs Dollar: There is a continuous improvement in the rupee and today the rupee has opened with the strength of 4 paise. Today the rupee has opened at 78.68 per dollar and yesterday it closed at 78.72 per dollar. The rupee has come down to 78.75 per dollar against the US dollar in early trade, which is showing weakness of 7 paise from the initial level of 78.68.
Why is the rupee rising
The rupee strengthened on the back of fall in crude oil prices and continuous investment of foreign funds in the capital market. Indications for a softer stance by the US Federal Reserve on raising policy rates improved risk appetite and strengthened rupee sentiment. The rupee has strengthened by 138 paise or 1.73 per cent against the US dollar in the last four days till Tuesday.
After going down to 80.06, the rupee recovered
The rupee had fallen to a low of 80.06 last month. Since then there has been a decent improvement in the last four seasons. The reason for this is the return of foreign institutional investors to the capital market again and crude oil prices coming below $100 a barrel.
what the experts say
Jatin Trivedi, Vice-President, Research Analyst Division, LKP Securities, said the rupee climbed higher above 78.50 due to weakness in dollar index and fall below USD 95 in West Texas Intermediate (WTA) crude. The trading limit of Rs can be seen between 78.45 to 78.85.
Dollar Index, FII Data
Meanwhile, the dollar index, which measures the strength of the dollar against the world’s six major currencies, rose 0.10 per cent to 105.55. International oil benchmark Brent crude fell 0.38 per cent to $99.65 per barrel. Foreign Institutional Investors (FIIs) were buying in the Indian market. According to available data, foreign investors bought shares worth a net Rs 825 crore on Tuesday.