Rupee vs Dollar: The Indian rupee strengthened by 21 paise to 90.44 against the US dollar in early trade on Monday amid positive market sentiment after the outline of the interim trade agreement between India and the US. Forex Traders say that even though the Indian Rupee had a weak start, it soon recovered its initial fall and started trading with a positive trend.
On Saturday, India and America had announced the preparation of a framework for an interim trade deal, under which both the countries will cut import duties on many items to boost bilateral trade. This news strengthened the sentiments of investors, which had a direct impact on the rupee.
Great rise in rupee
Weakness in dollar index and strength in domestic stock markets also supported the rupee. In the interbank foreign exchange market, the rupee opened at 90.66 against the dollar and rose to 90.44 during trading, which shows an increase of 21 paise over the previous closing price. It is noteworthy that earlier on Friday, the rupee had fallen by 31 paise and closed at 90.65 per dollar. Meanwhile, the dollar index, which gauges the dollar’s position against six major currencies, declined by 0.05 percent to 97.58.
stock market boom
A positive atmosphere was also seen in the domestic stock markets on Monday morning. In early trade, Sensex rose by 415.97 points to reach 83,996.37 points, while Nifty was seen trading at 25,819.75 points with a gain of 126.05 points. Crude oil prices remained soft in the international market and Brent crude fell by 0.94 percent to $ 67.41 per barrel, which also gave relief to the rupee.
According to stock market data, foreign institutional investors (FIIs) were net buyers on Friday and bought shares worth Rs 1,950.77 crore, which further strengthened confidence in the market.
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