Rupee fell face down
Just like the stock market, such a U-turn was seen in the currency market as well which has surprised everyone. When the currency market opened on Monday, there was a good rise in the rupee against the dollar, but later the rupee made such a U-turn that no one could believe and suddenly crossed the level of 93. The special thing is that the rupee fell by more than 50 paise against the dollar during the trading session. According to experts, due to rising tensions between Iran and America and increase in crude oil prices, there was a decline in the rupee against the dollar. Let us also tell you what kind of data is being seen in the currency market after the market is closed.
The US dollar rose on Monday, as new tensions in West Asia increased demand for the American currency and crude oil prices remained stable. Forex traders said that the local currency remained under pressure, due to the new conflict between America and Iran. Due to this conflict, the Strait of Hormuz was closed, due to which the global supply was disrupted. At the interbank forex market, the rupee opened at 92.73 and touched a high of 92.70 against the US dollar in intraday trade. It also fell as low as 93.24 during the session, and finally closed at 93.10 (provisional) against the dollar, showing a fall of 19 paise from its previous close. On Friday, the rupee strengthened by 28 paise and closed at 92.91 against the US dollar. Just a day before this, it had gained 19 paise in Thursday's session.
Mirae Asset Sharekhan's Research Analyst Anuj Choudhary said that the rupee weakened due to strong dollar and rise in crude oil prices. This situation arose after Iran announced that it had again closed the Strait of Hormuz, which worsened global risk sentiments. Chaudhary said that due to new geopolitical tension between America and Iran, the falling trend of rupee is expected to continue. However, the ceasefire between Israel and Lebanon may provide some support to the rupee at lower levels. USD-INR spot price is expected to be in the range of Rs 93 to Rs 93.60.
Meanwhile, the dollar index - which measures the US dollar's strength against a basket of six currencies - rose 0.14 per cent to 98.03. Brent crude, the global oil benchmark, was trading at US $ 94.57 per barrel, down 4.64 percent in futures trade. Analysts said crude oil prices rose again after falling below US$90 per barrel on Friday. This happened because the geopolitical situation became unstable due to the new conflict between the US and Iran, which disrupted the passage of ships through the Strait of Hormuz. Domestic stock markets remained almost flat. The 30-share Sensex closed 26.76 points or 0.03 per cent higher at 78,520.30, while the Nifty rose 11.30 points or 0.05 per cent to 24,364.85. According to exchange data, foreign institutional investors bought shares worth Rs 683.20 crore on Friday.
