Rupee vs Dollar / Mumbai, New York or Shanghai, rupee rocks, dollar crashes

Rupee vs Dollar: Nowadays the world's most powerful currency, i.e. dollar, seems helpless against the rupee. It is surprising to see that in three trading days, the rupee has gained continuous strength against the dollar, and it has increased by more than one rupee. The main reason for this change is the return of foreign investors to the Indian stock market and many other factors, which are supporting the rupee.

Reasons for strength in rupee

If we look at the reasons for the rise of the rupee, then the most important factor among them is the return of foreign investors to the stock market. Due to this, the Indian currency has got an important support. Along with this, the fall in crude oil prices to a four-year low is also a positive sign for the rupee. When crude oil prices fall, the demand for dollars in countries like India is reduced, and this strengthens the rupee.

Weakness in the US currency has also been beneficial for the rupee. The dollar index, which measures the strength of the dollar against six major currencies, recently saw a decline. Apart from this, the Indian stock market is also showing strength these days. There is a bullish environment in both BSE Sensex and Nifty, due to which the rupee is getting stronger.

Impact of crude oil and US currency

Changes in global economic activities also affect the Indian currency. The fall in crude oil prices has strengthened the Indian rupee against the dollar. The price of Brent crude in the international market has reached a 4-year low, which is a good sign for the rupee. This decline has helped reduce India's trade deficit, which has supported the rupee.

The Indian rupee has strengthened its position against the dollar due to weakness in the US currency and other global events. Forex traders believe that the Indian rupee may see further strength, especially if the US dollar continues to decline.

FII investment and government data

Recently, India's foreign institutional investors (FIIs) have invested a large amount in the Indian stock market. On Tuesday, FIIs bought equities worth Rs 6,065.78 crore, giving further strength to the rupee. Apart from this, India's wholesale inflation rate has also declined, which is positive for the rupee. Wholesale inflation fell to 2.05 percent in March, which is a six-month low. This has brought stability to the Indian economy, and supported the rupee.

Indian exports improve

Although global economic uncertainties remain, Indian exports saw a slight increase in the month of March. Indian exports grew by 0.7 percent, and reached US $ 41.97 billion. This clearly shows that the Indian economy is improving, and this is further strengthening the rupee.