Dollar vs Rupee / The rupee turned the tables, nobody had imagined that the dollar would meet such a fate

Dollar vs Rupee: Recently, the US currency dollar saw a huge decline, while the Indian rupee continued to strengthen. Former US President Donald Trump took steps like tariffs to stabilize the US economy and strengthen the dollar, but despite this, the dollar saw a decline. The dollar index fell by about 2% in the last 24 hours, while the Indian rupee fell below the level of 85 against the dollar.

Reasons for the fall in the dollar

There were several important reasons behind the fall in the dollar:

Announcement of reciprocal tariff: The tariffs imposed by the Trump administration on about 60 countries were expected to strengthen the dollar, but it had the opposite effect. This made US imports expensive, increasing the burden on consumers and reducing the demand for the dollar.

Fears of global economic recession: The tariff war increased the risk of recession on the US economy, which weakened investor confidence and led to a decline in the dollar.

Weakness of US currency in foreign markets: Global investors turned to other emerging economies, increasing the weakness of the dollar.

Fall in crude oil prices: The fall in oil prices benefited importing countries like India, which strengthened the Indian rupee.

Reasons for the strength of the Indian rupee

The Indian rupee has strengthened against the dollar in the last few months. The main reasons for this are the following:

Dollar weakness: When the US currency weakens, the currencies of emerging economies strengthen, and the Indian rupee is also following this trend.

Stability of the Indian economy: India's economic policies and trade competitiveness have helped strengthen the rupee.

FII investment: Increasing investment by foreign institutional investors (FIIs) in the Indian markets was also a major reason for the strengthening of the rupee.

Effect on the stock market

The weakness of the dollar and the slowdown in the US stock market also affected the Indian stock market. The Bombay Stock Exchange (BSE) Sensex fell by more than 1000 points to reach the level of 75,348.90, while the National Stock Exchange (NSE) Nifty came down to the level of 22,897.85. Foreign investors also sold Indian shares in large quantities, leading to volatility in the market.