support@headlinenews360.com
Indian Rupee vs US Dollar: The Indian rupee has strengthened for the third consecutive day. Emerging from record low, the rupee rose by 21 paise to 87.75 per dollar on the last trading day of the week i.e. Friday. Increase in foreign capital inflows and fall in crude oil prices have strengthened investor sentiment.
Why did the rupee strengthen?
In the Interbank Foreign Exchange Market, the rupee opened at 87.91 per dollar and touched a high of 87.75 per dollar. This shows an increase of 21 paise from the previous closing price. On Thursday, the rupee strengthened by 12 paise and closed at 87.96 per dollar.
According to Dilip Parmar, Research Analyst, HDFC Securities, the rupee has registered a continuous rise due to the weakening of the dollar against major currencies and improvement in risk-based investment stance. Foreign capital inflows and strategic intervention by central banks have accelerated this growth.
He further said that the rupee may remain stable within a limited range before the upcoming holidays. However, its further direction will depend on dollar flows and global geopolitical developments. In the near future, the dollar-rupee pair may see support at 87.60 and resistance at 88.70.
Crude oil and stock market situation
Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, fell 0.16% to 98.17. The price of Brent crude oil also declined by 0.26% to $ 60.90 per barrel. Domestic stock markets witnessed a decline in early trade — Sensex slipped 261.58 points to 83,206.08 and Nifty fell 76.70 points to 25,508.60. According to stock market data, foreign institutional investors (FIIs) remained buyers on Thursday and bought shares worth Rs 997.29 crore.
