Rupee Market Analysis / Rupee made the biggest roar in two years, dollar's wall collapsed

The rupee has shown tremendous growth in the last six trading days, weakening the dollar. On Friday, the rupee closed 36 paise higher at 86 (provisional). Foreign investment and strength in the stock market are supporting the rupee, although crude oil prices may bring further volatility.

Rupee Market Analysis: In the last six trading days, the Indian rupee has shown continuous strength and has made the biggest jump in two years. The rupee has registered an increase of Rs 1.23 i.e. about 1.5% against the dollar. It is worth noting that on February 10, the rupee was at its lifetime low level of 87.94, but till now it has seen a recovery of Rs 1.94 i.e. 2.20%. At the same time, the dollar index, which was at the level of 110 in January, has registered a decline of 5-6% so far. Let us know, let's take a look at the key figures after the currency market closed.

Strength in rupee for the sixth consecutive day

The rupee strengthened for the sixth consecutive day on Friday due to a tremendous jump in the domestic stock market and foreign capital inflow. The rupee closed at 86 (provisional) with a gain of 36 paise. The rupee opened at 86.26 at the Interbank Foreign Currency Exchange and touched a high of 85.93 and a low of 86.30 during the day's trading and finally closed at 86. Earlier on Thursday, it closed at 86.36 with a marginal gain of 1 paisa. In the last six trading days, the rupee has gained 123 paise.

Will the rupee strengthen further?

According to Anuj Chaudhary, research analyst at Mirae Asset Sharekhan, the strength of domestic stock markets and fresh investment by FIIs may further strengthen the rupee. However, a possible increase in crude oil prices may put a brake on the rupee's rise to some extent. The spot price of USDINR is likely to remain in the range of 85.80 to 86.25. On the other hand, the dollar index was trading at 104.04 with a gain of 0.19%.

Strong stock market position

Brent crude futures fell 0.29% to $ 71.79 per barrel in the global market, giving relief to the Indian markets. At the same time, the domestic stock market also saw a tremendous jump. The 30-share BSE Sensex closed at 76,905.51 with a gain of 557.45 points (0.73%). At the same time, the Nifty rose 159.75 points (0.69%) to 23,350.40. According to exchange data, foreign institutional investors (FIIs) bought shares worth Rs 3,239.14 crore on a net basis on Thursday.