Rupee vs Dollar / 'Rupee' broke the pride of 'Dollar', respect increased in Asia, tremendous growth was seen

On Thursday, the dollar again appeared helpless against the rupee in India's forex market. Rupee broke the pride of the dollar and made a tremendous jump of 19 paise and put itself in the safe zone. According to experts, the rupee has seen a good rise due to the fall in the dollar index and the fall in the prices of crude oil.

Rupee vs Dollar: The Indian rupee jumped 19 paise to 86.79 against the US dollar in India's foreign exchange market on Thursday. Experts believe that the rupee has strengthened due to the fall in the dollar index and the reduction in crude oil prices. The market was closed on Wednesday on the occasion of Chhatrapati Shivaji Maharaj Jayanti, but the rupee's strength was already visible in private exchange data.

Support from fall in dollar index

The dollar index, which reflects the strength of the US dollar against six major currencies, was trading 0.16% lower at 107 on Thursday. Apart from this, softening of crude oil prices also helped in strengthening the rupee. Brent crude fell 0.34% to $ 75.78 per barrel.

Impact on foreign investor sentiment

Although the domestic equity market saw a decline, the rupee got support. The BSE Sensex closed 297.33 points (0.39%) lower at 75,641.85 and the Nifty closed 69.25 points (0.3%) lower at 22,863.65. Foreign institutional investors (FIIs) sold equities worth Rs 1,881.30 crore on Wednesday, leading to an outflow of foreign capital.

Signs for the Indian economy

According to the report published in the February bulletin of the Reserve Bank of India (RBI), there are signs of a boom in economic activity. Indicators such as vehicle sales, air traffic, steel consumption and GST e-way bills indicate that economic activity may accelerate further in the second half of FY 2024-25. However, a strong US dollar globally may put pressure on emerging economies.

Rupee's future movement

According to Amit Pabari, MD, CR Forex Advisors, the dollar-rupee pair may trade in the range of 86.60-87.20. The level of 87.20 remains an important resistance point, while 86.50 may be a key support level for the rupee. If the rupee goes below 86.50, it may fall to the level of 85.80-86.00.

Conclusion

The strength of the Indian rupee is a result of domestic and global factors. The weakness of the dollar index and the fall in crude oil prices are providing support to the rupee. Although there is some pressure in the market due to selling by foreign investors, positive signs of the Indian economy may help maintain the stability of the rupee in the coming days.