In the past five trading sessions alone, the currency has managed to gather ground, making mammoth gains of about 1 per cent. This is reported to be the longest streak of gain and the best streak in a nearly two years.
| Freepik
The Indian Rupee appears to be on the path to return. The national currency of the most populous country in the world has improved its standing against the world’s reserve currency, the United States Dollar.
In the past five trading sessions alone, the currency has managed to gather ground, making mammoth gains of about 1 per cent. This is reported to be the longest streak of gain and the best streak in nearly two years.
Indian Rupee Surges
As per the latest data, the currency strengthened to 86.0747 against the United States Dollar. This is better than the previous day’s closing of 86.336 against the US dollar.
A stronger currency usually aids the purchasing power of citizens, as imported goods and their price becomes more attainable. This could lead to greater consumption.
However, at the same time, for an export-oriented economy or an economy, that is looking to focus on manufacturing, a stronger currency often tends to make exports weaker and therefore manufacturers less competitive in the international market.
Decline Of Dollar
When we look at the Indian Rupee’s rise in the recent past, this is largely attributed to the parallel decline of the US Dollar. The US dollar has struggled in the recent past, in the face of global uncertainties emerging as a result of its own policies, spearheaded by US President Donald Trump.
When we look at the U.S. Dollar Index (DXY), which is the measure of the value of the dollar against a basket of currencies from around the globe.
MarketWatch
|The current value of the US dollar as per U.S. Dollar Index (DXY) stands at 103.98, lower than its February-end price of 107.61.
Pound Vs Rupee
When we look at the status of the Rupee against another major currency, the British Pound Sterling, we see that there has been a surge of about 1 per cent in Rupee’s prospects.
The Indian Rupee, when stacked against the Pound Sterling amount to 111.31 per Pound. This value is lower than the 112.53 at the beginning of the week.
