2
Dollar-Rupee: The strength of the rupee can be a temporary relief, as global pressure, especially American tariffs and crude oil prices, can challenge its stability.
Dollar-Rupee: The Indian rupee reached 87.73 against the US dollar in early trade on Wednesday to 87.73. A day earlier it closed at 87.88 with a historic decline. Many economic and global indicators played the role behind this fast, while there are some pressure that can limit its strength. Now the eyes are on the RBI policy, which can prove to be decisive in fixing the direction of the rupee.
Enthusiasm in the market before RBI meeting
Today is the last day of the three -day meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI). Earlier, there has been an atmosphere of hope among investors that there may be a relief announcement regarding interest rates, which has given support to the rupee.
Weakened dollar index, benefited
The dollar index, which reflects strength compared to other six major currencies of the dollar, fell by 0.07% to 98.71. This decline proved to be helpful for other currency including rupee. One reason for the weakness of the dollar is the import duty and global uncertainty proposed by the US. However, in the international market, Brent crude prices have increased by 0.62% ($ 68.06 per barrel), which is a matter of concern for import-dependent countries like India. This can increase the trade deficit and create pressure on the rupee.
Trump’s tariff threats and crisis on oil purchase from Russia
US President Donald Trump has threatened India to impose import duty on purchasing crude oil from Russia. If this conflict continues, then there may be further pressure on the rupee. According to Anil Bhansali of Finrex Trazary Advisions, “If the solution is not found, this crisis may deepen and RBI may have to protect the level of 88.”
FII investment and stock market move
Foreign institutional investors (FIIs) withdrawn ₹ 22.48 crore from the Indian market on Tuesday, which could not catch the rupee even more strength. However, positive trends were seen in the domestic stock market, the Sensex rose 113 points to 80,823 and the Nifty reached 24,668.
Also read: Barapa havoc in Uttarkashi, there is a flood of death in Dharali village, Shiva temple ground, rescue continues
