After Tuesday, big news came from the money market on Wednesday. There is a tremendous increase in the rupee against the dollar. This step is also considered important because Prime Minister Narendra Modi’s visit to America is going to start from 12 February. Which will run till 14 February. Tariff will be an important issue in this meeting.
These tariffs saw a huge fall in the rupee against the dollar. But due to the fall in crude oil prices in foreign markets and the intervention of RBI, the rupee strengthened against the dollar. On Wednesday, the biggest lead was recorded in two years with an increase of one percent in the rupee. After this decline, the rupee is seen at the level of 86.50 against the dollar. However, experts also say that by the end of March, the rupee can reach a level of 88.60 against the dollar.
Growth for the second consecutive day
On Wednesday, the rupee strengthened 27 paise to 86.52 against the US dollar in early trade. Which has been supported by a fall in crude oil prices and steps taken by the Reserve Bank of India (RBI). However, forex traders stated that the rise of the rupee was limited by the strengthening of the American currency amidst unstable local stock markets, foreign capital outflow and global tariff war concerns. The rupee opened at 86.44 against the US dollar in the interbank foreign exchange market and closed at 86.52 after touching a high level of 86.36 in early trade, indicating an increase of 27 paise from the previous closed price.
The longest jump in two years
On Tuesday, the rupee strengthened 66 paise to close at 86.79 against the dollar. This was the highest growth recorded in any one session since 3 March 2023. Meanwhile, the dollar index, depicting the US dollar position against six major currencies, rose 0.07 percent to close at 107.91. The International Benchmark Brent crude is trading at $ 76.36 per barrel with a decline of 0.31 percent. According to the stock market data, foreign institutional investors (FIIs) were pure sellers on Tuesday and sold shares worth Rs 4,486.41 crore.
What do the experts say?
According to commodity currency experts, there is an improvement in the rupee after the Reserve Bank of India intervention. However, the dollar index has indicated a significant increase compared to other currencies. He said that there is a lot of ups and downs in the international currency market. Something similar will be seen in the coming days. He said that by the end of March or in other words, the rupee may fall to a maximum level of 88.60 against the dollar by the end of the current financial year.
