Even though there is a slight decline in the rupee against the dollar, but the situation which was seen about 3 weeks ago, the rupee has become very strong in that match. At present, the rupee is no longer like a sand wall, so the dollar will ever demolish with its strength. The rupee is now seen fighting the dollar strength with a strong kind of rock. In the last 3 weeks, such transition in rupee is rarely seen not only in Asia but in any currency of the whole world. On February 10, the rupee reached his life low. And it was expected that the rupee would touch the level of 90, crossing the level of 88 comfortably. But even after three weeks, this is not being seen. Let us also tell you what kind of tussle is being seen in the rupee and dollars.
Even though US President Donald Trump is seen in the mood to demolish every currency in the world. The condition of the currency yuan of China and the currency yen of Asia's biggest economy and Japan's currency yen have become quite tight. But India's currency is seen standing like a rock. In the last three weeks, India's rupee is seen to be 70 paise stronger than the dollar. In fact, the rupee reached the record level with a level of 87.95 in the dollar. After that, the rupee tried to increase its strength and in a few days the rupee recovered and came to a strength of about one and a half percent. Since then, the rupee is constantly getting ups and downs, but yet the rupee has not crossed the 88 level. Whereas in the current era, efforts have been stopped by RBI. Even after that, the rupee is handling himself.
The rupee fell by eight paise to 87.40 against the US dollar in early trade on Tuesday due to frequent withdrawal of foreign capital and current liquidity deficit. Foreign currency traders said that the uncertainty issued due to the charge of the US has turned up in the financial markets. In addition, the fee chaos has created volatility and uncertainty in the US Dollar Index. The rupee opened at 87.38 against the US currency in the Inter Bank Foreign currency market and then came to 87.40, which shows a decline of eight paise in the previous closed price. On Monday, the rupee closed at 87.32 against the US dollar at 87.32.
If you talk about the dollar index, then there is an atmosphere of decline. If we look at the data, it is trading at the level of 106.59 with a decline of 0.15 percent. By the way, in the last 5 business days, the dollar index is seeing a rise of 0.26 percent. At the same time, the dollar index has fallen by 1.28 percent in a month. Talking about the current year, the dollar has seen a decline of 1.75 percent in the index. However, in the current year, the dollar reached the level of 110 on January 13. Since then, the dollar index has seen a decline of 3.22 per cent, which is a major decline.
Global oil standard brent crude futures were dropped by 0.63 percent to $ 71.17 per barrel. In the domestic equity market, the 30 -share BSE Sensex declined by 175.61 points to 72,910.33 in the morning trading, while the Nifty fell by 61.55 points to 22,057.75. According to the stock market data, foreign institutional investors (FIIs) on Monday sold shares worth Rs 4,788.29 crore in the capital market.
Finrex Treasury Advisors LLP's Treasury Head and Executive Director Anil Kumar Bhansali said that the Nifty is falling on the daily base due to continuous selling of FPI, the rupee is also being sold with the US dollar due to the demand to avoid the risk. On the global front, President Donald Trump said on Monday that 25 % tax on imports from Mexico and Canada would be applicable from Tuesday.
Trump has stated that the fees are to intensify their fight against Mexico and Canada to intensify their fight against Phantanile smuggling and stop illegal immigration. He wants to eliminate America's trade imbalance and motivate more factories to transfer to America. Amit Pabari, MD, CR Forex Advisors, said that the market reacted negatively to these developments, concerns about global trade stability are increasing.
