Home ›   India ›   Rupee once again showed its power to the world, became the biggest problem for the dollar

Dollar vs Rupee News: Rupee once again showed its power to the world, became the biggest problem for the dollar
Dollar vs Rupee News - Rupee once again showed its power to the world, became the biggest problem for the dollar
| Updated on: 19-Feb-2025 03:40 PM IST
Dollar vs Rupee: Recently, the Indian rupee has been continuously strengthening against the US dollar. Until some time ago, the dollar remained the biggest challenge for the rupee, but in the last 10 days it has emerged as one of the strongest currencies globally.

Factors for strengthening the rupee

Rise in interbank exchange: According to the latest data from the interbank exchange, the rupee is trading stronger than Tuesday's closing, even though crude oil prices have increased.

Tesla's arrival in India and the impact of Trump's tariff: Elon Musk's confirmation of Tesla's entry into India and the possibility of limited impact of Trump's tariff have strengthened the rupee. Tesla has announced the opening of new showrooms in Mumbai and Delhi and recruitment of its employees in the Indian market. This has increased investor confidence.

Decline in dollar index: The dollar index is also seeing a decline, which has given additional support to the rupee. Recently it has come below the level of 107 and has declined by about 1% in the last five trading days.

Indian policy reforms: The announcement of tariff cuts and concessions in EV policy by the Government of India has also strengthened the rupee. Clarity regarding the business environment has increased after Prime Minister Narendra Modi's US visit, which has increased the confidence of foreign investors.

Market impact

The Indian stock market registered a rise on Wednesday. On the other hand, on Tuesday, the rupee weakened by 10 paise to close at 86.98 per dollar against the US dollar. However, the current trend indicates that the rupee may remain strong in the coming days.

Conclusion

There are many economic and global reasons behind the strength of the Indian rupee. Tesla's entry into India, limited impact of Trump's tariffs, fall in dollar index and new policies of the government are supporting the rupee. If this trend continues, the Indian currency may become more stable and stronger in the coming times.