Dollar vs Rupee / Will the dollar's pride always be broken? The roar of the rupee was heard again

Dollar vs Rupee: The Indian rupee closed strongly for the third consecutive session in the interbank foreign exchange market, which is a positive sign for the economy. On Wednesday, the rupee closed at 85.68 per dollar (provisional) with a gain of 12 paise. Fresh buying by foreign institutional investors, weakness in the dollar and strength of domestic economic indicators were the main reasons behind this rise.

Economic indicators supported

Forex traders said that the US decision to postpone the imposition of tariffs for 90 days created a positive atmosphere in the global markets. At the same time, strong macroeconomic data released at the domestic level increased investor confidence, which had a direct impact on both the stock market and the rupee.

Relief from softening of crude oil prices

The softening of crude oil prices in the international market also played an important role in the strengthening of the rupee. Global oil benchmark Brent crude futures rose 0.88 per cent to $65.24 a barrel, which is the level after April 2021. The reduction in oil prices brings relief to importing countries like India and provides stability to the currency.

Foreign investors showed appetite for buying

Foreign institutional investors (FIIs) bought shares worth Rs 6,065.78 crore in the capital market on Tuesday. This investment reflects confidence in the rupee and also brought a positive wave in the stock market. The BSE Sensex closed with a gain of 309.40 points at 77,044.29 points, while the NSE Nifty rose 108.65 points to 23,437.20 points.

Dollar index falls, rupee benefits

The dollar index, which shows the strength of the US dollar against six major currencies, fell 0.57 percent to 99.39. This level has been seen after March 2022. This weakness of the dollar strengthens the currencies of emerging economies, and this time the rupee benefited from it.

Three days of gains, enthusiasm in the market increased

The rupee gained 58 paise on Monday, 30 paise on Tuesday and 12 paise on Wednesday, which is three consecutive days of strength. On Wednesday, the rupee opened at 85.66 and closed at 85.68 after touching a high of 85.50 and a low of 85.72 during the day's trading.