The rupee on Friday closed 12 paise higher at 79.57 (provisional) against the US dollar. The rupee opened at 79.66 against the dollar in the interbank foreign exchange market.
The rupee on Friday closed 12 paise higher at 79.57 (provisional) against the US dollar.
The rupee on Friday closed 12 paise higher at 79.57 (tentative) against the US dollar amid a positive trend in domestic equity markets and foreign fund inflows. The rupee opened at 79.66 against the dollar in the interbank foreign exchange market. The rupee saw an upper level of 79.47 and a lower of 79.66 in the day’s trading. Finally it closed at 79.57 against the dollar. This is 12 paise more than the previous closing price. Earlier, the rupee had closed at 79.69 on Thursday.
Why did the rupee strengthen?
Meanwhile, the dollar index, which shows the position of the US dollar against the six major currencies, fell 0.98 per cent to 108.63. At the same time, global oil standard Brent crude futures were up 1.72 per cent at $ 90.68 per barrel. Experts said that the rupee has strengthened due to the rise in domestic stock markets and weakening of the dollar abroad.
Anuj Choudhary, Research Analyst at BNP Paribas, said that the unprecedented increase of 0.75 percent in the European Central Bank (ECB) interest rate has put pressure on the dollar. He added that due to global inflation, risk-averse assets may also see pressure. However, weakness in the dollar and positive cues in global markets may support the rupee at lower levels. Chaudhary said that the rupee may remain in the range of 79-80.30 against the US dollar in the next few sessions.
Foreign institutional investors (FIIs) bought shares worth a net Rs 2,913.09 crore on Thursday, according to provisional data from the stock market.
What happens to you and us?
The common man gets the benefit when the commodity prices fall in the world markets and the rupee becomes stronger against the dollar. Common people get relief on the inflation front only when the commodity prices fall in the global market and the rupee strengthens. At the same time, the weakening of the rupee reduces the effect of any shortage in the imported commodity from the international market. In such a situation, it will take more time to get the benefit of the fall in crude oil because the depreciation of rupee in the midst of fall in prices will increase the import bill and this will continue to burden the exchequer. Right now there is a decline in crude oil in the foreign markets, but due to the weakening of the rupee, the common people are not getting its benefit.
(with language input)