Rupee vs Dollar: The Indian Rupee, after recently crossing the historical level of 91 against the US Dollar, now seems to be recovering due to the possible intervention of the Reserve Bank of India (RBI). On Friday morning, the last trading day of the week, the rupee strengthened by 24 paise to reach 89.96 per dollar, creating some relief in the foreign exchange market.
Rupee is stable
Forex traders say that this strengthening of the dollar-rupee pair is the result of possible aggressive intervention by the RBI, the aim of which is to prevent excessive fluctuations in the rupee and maintain market stability. Along with this, the rupee has also got support due to the stability of crude oil prices in the international market around $ 59 per barrel, because India is a big oil importing country and stability in oil prices reduces the pressure on the current account deficit.
In the interbank foreign exchange market, the rupee opened at 90.19 and gradually strengthened to reach 89.96, showing an increase of 24 paise over the previous closing price. Earlier on Thursday also, the rupee had strengthened by 18 paise and closed at 90.20, which indicates that after continuous decline, some improvement is now being seen in it. Meanwhile, the dollar index, which gauges the dollar’s position against six major global currencies, stood at 98.46 with a slight rise of 0.04 percent, indicating that there is no major weakness in the dollar, yet the rupee has strengthened its position to some extent.
stock market boom
A positive trend was also seen in the domestic stock market, where the Sensex rose by 375.98 points in early trade to reach 84,857.79 points, while the Nifty rose by 110.60 points and was seen trading at the level of 25,934.15.
This rise in the stock market was also strengthened by the buying by foreign institutional investors (FIIs), who bought shares worth a net Rs 595.78 crore on Thursday. Overall, due to the active role of RBI, stable crude oil prices and positive environment in the stock market, the rupee seems to be coming out of pressure at the moment, although experts believe that it may continue to fluctuate amid global uncertainties.
Also read: Gold price fell, know how cheap gold became in your city today on 19th December.
