Rupee vs Dollar / Now something will happen in Rupee vs Dollar which has never happened before!

The fluctuation between the rupee and the dollar continues. After falling on Tuesday, the rupee strengthened to 85.69 per dollar on Wednesday. It improved due to increased foreign investment. According to experts, this tug of war will continue till the end of the financial year. Geopolitical tensions and market factors will remain important.

Rupee vs Dollar: The game of fluctuations between the Indian rupee and the US dollar has intensified. The rupee fell on Tuesday, raising concerns in the market, but the rupee emerged strong on Wednesday evening. The flow of foreign investment played an important role in this improvement.

Market movement

The rupee recovered from initial weakness on Wednesday and closed at 85.69 per dollar. It started trading at 85.71 in the interbank foreign exchange market and touched a high of 85.68 and a low of 85.98. The rupee strengthened due to increased investment by foreign investors and dollar supply from exporters.

Reasons for strength

According to Dilip Parmar, Senior Analyst at HDFC Securities, the rupee got support from the revival of foreign investment. Apart from this, the trading volume remained relatively low due to the necessary adjustment in the market at the end of the financial year. Experts believe that the rupee may get support at the level of 85.40 in the coming weeks, while it may face resistance at 86.25.

Global impact and economic indicators

Geopolitical tensions, especially the Israel-Gaza conflict and US policy decisions, are strengthening the dollar. The US President's threat to impose a 25% duty on oil imports from Venezuela led to a rise in crude oil prices, putting pressure on the Indian currency.

Stock Market and Dollar Index

The dollar index hit 104.21, while Brent crude oil was trading at $73.48 per barrel. The BSE Sensex fell 728.69 points to close at 77,288.50 and the Nifty fell 181.80 points to 23,486.85. Foreign institutional investors (FIIs) bought shares worth Rs 5,371.57 crore, supporting the rupee.

Forecast for the coming days

Foreign investment inflows, inflation data and the upcoming monetary policy meeting will play a key role in maintaining the strength of the rupee. According to experts, this tug of war between the rupee and the dollar may continue till the end of the financial year.