Dollar bowed down in front of Rupee, such power was never seen in Asia
On Tuesday, the Indian rupee saw a rise of about one percent, which was the biggest jump in two years. On Wednesday too, the rupee saw a gain of 27 paise against the dollar. On Thursday too, the rupee is seeing an increase of 14 paise against the dollar.
The Indian rupee is seen beating the dollar for the third consecutive day. In comparison to other Asian currencies, the rupee has shown more strength against the dollar in recent days. This trend, which started on Tuesday, is also being seen on Thursday.
On Wednesday, the rupee was seen rising for most of the time during the trading day. But the rupee also saw a decline due to the market closing. That is a different matter.
Experts believe that the rupee is rising against the dollar due to RBI's intervention and the reduction in inflation figures in India and the inflation figures in the US also being higher than expected. If experts are to be believed, this rise may continue in the coming days.
The special thing is that other currencies of Asia, whether it is China or Japan, have not been able to show the same courage against the dollar as the Indian rupee has shown.
On Tuesday, the Indian rupee saw a rise of about one percent, which was the biggest jump in two years. On Wednesday too, the rupee saw a gain of 27 paise against the dollar.
On Thursday too, the rupee is seeing an increase of 14 paise against the dollar. Let us also tell you at what level the Indian rupee is trading against the dollar at present.
Rupee continues to rise against dollar
The rupee rose 14 paise to 86.81 against the US dollar in early trade on Thursday due to a soft US dollar and a drop in crude oil prices overseas.
Foreign currency traders said the local unit, which was under pressure due to endless outflows of foreign funds, found support from some improvement in domestic equity markets on the back of better-than-expected inflation data released by the government on Wednesday.
At the interbank foreign currency, the rupee opened strong at 86.82 and rose 14 paise from its previous close to 86.81 against the greenback during early trade.
On Wednesday, the rupee declined 16 paise against the dollar and closed at 86.95. In the previous session on Tuesday, the rupee had strengthened by 66 paise to close at 86.79 against the greenback, recording its maximum single-day gain since March 3, 2023.
The dollar is losing strength
Meanwhile, the US dollar index is witnessing a decline. The dollar exchange is trading at 107.59 with a decline of 0.22 percent. If we look at the data, the dollar index has seen a decline of 1.20 percent in the last one month. Whereas in the current year, the dollar index has seen a decline of 0.77 percent.
Whereas in one year, the dollar index has seen an increase of 3.21 percent. According to experts, the currency market is quite unstable right now.
The tussle between the dollar and the rupee may continue in the coming days. Its main reason is the trade war of US President Donald Trump. Due to which there is an atmosphere of uncertainty all over the world.
Why is the dollar seeing a decline
Analysts said the dollar weakened after US data showed higher-than-expected inflation, dashing hopes of immediate monetary easing by the Federal Reserve.
In the global market, Brent crude futures fell 1 per cent to US$74.43 a barrel. In the domestic equity market, the 30-share BSE Sensex was trading 441 points higher at 76,597.42, while the Nifty was up 136 points at 23,181.45.
According to exchange data, foreign institutional investors (FIIs) sold equities worth Rs 4,969.30 crore on a net basis on Wednesday.