Rupee vs Dollar: Even though the Indian stock market opened with a decline on the fourth trading day of the week, the rupee strengthened. The Indian rupee strengthened by 38 paise to reach 90.40 per dollar in early trade on Thursday. The rupee received support from foreign investment inflows and possible intervention by the Reserve Bank of India (RBI), due to which positive signals were seen in the market.
According to Anuj Chaudhary, research analyst at Mirae Asset Sharekhan, the rupee was earlier under pressure due to demand for dollars from importers and increasing geopolitical tensions. Apart from this, the rise in crude oil prices also weakened the rupee. However, the weakness of the US dollar and foreign investment inflows limited this decline to a great extent.
Why the strengthening of rupee?
The dollar weakened due to weak US non-farm employment (Non-Farm Payroll) and retail sales data, which benefited the rupee. Forex traders say that even though the inflow of foreign investment is not very much, it has created psychological stability in the market. Also, RBI is ensuring that sufficient cash is available in the banking system, so that fluctuations in the money market can be controlled.
In the interbank foreign exchange market, the rupee opened at 90.55 and later strengthened to 90.40. During early trading it also reached the level of 90.56. Earlier on Wednesday, the rupee had fallen by 22 paise and closed at 90.78 per dollar. During this period, the dollar index, which shows the position of the US dollar against six major currencies, fell by 0.05 percent to 96.78.
stock market crash
Although the currency market showed strength, the stock market remained under pressure. In early trade, Sensex fell 349.87 points to 83,883.77, while Nifty slipped 106.60 points to 25,847.25. At the same time, the price of Brent crude in the international market increased by 0.42 percent to $ 69.69 per barrel, due to which there is concern about the import cost. According to stock market data, foreign institutional investors (FIIs) were net buyers on Wednesday and bought shares worth Rs 943.81 crore, providing some support to the market.
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