Dollar vs Rupee / Rupee's 'threat' will continue in Asia, dollar's 'threat' will vanish

Dollar vs Rupee: The Indian rupee remained the center of discussion in the Asian currency market last week. The rupee appeared to emerge strongly against the dollar, making it the strongest currency in the entire region. According to the data, the rupee strengthened by about 1% against the dollar last week. At the same time, China's Yuan and Japan's Yen failed to stand against the dollar.

Experts believe that the rupee has been able to gain strength due to the strategic policies and strong intervention of the Reserve Bank of India (RBI). These policies have not only been helpful in maintaining balance in the market but have also been successful in reassuring investors.

Will the strength of the rupee continue?

According to financial experts, the strength of the rupee may continue next week as well. The trend of decline in the dollar continues and the rupee is getting further support from the reduction in crude oil prices. It is estimated that the strength of the rupee may increase further from Monday, which will further strengthen its position in the Asian market.

Last week's performance

Last week, the rupee saw a gain of more than 1% against the dollar. This is the first time that the rupee has shown such strength in a single week. Experts say that if the current trend continues, a further increase of 1 to 1.5% is possible in the rupee next week as well.

Rupee showed strength on Friday

On Friday, the rupee jumped 22 paise to end trading at 86.71 in the Interbank Foreign Currency Exchange Market. The rupee gained strength due to the softening of the dollar after the US government's decision to defer the tariff hike. However, there was some pressure on the rupee due to the selling by foreign institutional investors (FIIs).

Due to fall in dollar index

The dollar index fell 1.15% to 106.79 last week. This decline is mainly linked to the US Federal Reserve's policy of not cutting interest rates. The dollar's weakness increased after the statement of Fed Chairman Jerome Powell, which strengthened other currencies.

Expert opinion

According to Anuj Gupta, currency expert of HDFC Securities, the strength of the rupee may remain in the coming week as well. He said that all the factors supporting the rupee are active, such as the fall in crude oil prices and the weakness of the dollar index.

Anuj Chaudhary, research analyst at Mirae Asset Sharekhan, believes that the rupee may benefit from the fall in the US dollar and volatility in the global market. However, selling by foreign investors may put some pressure, but the intervention of the Reserve Bank of India can balance it.

Conclusion

The Indian rupee is continuously showing strength in the Asian currency market. RBI policies, weakness in the dollar index and fall in crude oil prices are providing support to the rupee. If these trends continue next week, the Indian rupee can once again prove its strength in the Asian market.