Rupee Vs Dollar: The rupee on Wednesday closed 25 paise higher at 86.33 (provisional) against the American currency due to positive trend in the local stock markets and weakness in the US dollar index. Forex traders said the rupee may witness higher volatility with a negative trend ahead of major events in the global and domestic economic scenario.
Rupee closed with an increase of 25 paise
Furthermore, overall uncertainty about the global economy kept both currencies and commodities under pressure, keeping investors worried. In the interbank foreign exchange market, the rupee opened at 86.56 against the dollar. It reached a high of 86.30 and a low of 86.71 against the dollar during the session. Finally it closed at 86.33 per dollar, which is an increase of 25 paise against the US dollar. On Tuesday, the rupee had fallen by 13 paise to 86.58 against the US dollar.
What does the currency expert say?
Anuj Chaudhary, Research Analyst, Mirae Asset Sharekhan said, “The rupee is expected to remain largely weak due to the underlying strength in the US dollar and overall weakness in the domestic markets. Importer demand for the dollar may also put pressure on the rupee. However, “Any prolonged selling in crude oil may provide support to the rupee at lower levels.”
Anuj Chaudhary said that due to the statements and announcements coming from the Trump administration, there may be some fluctuations in the market. He said that the dollar-rupee spot price is expected to be between 86.20 to 86.65.
Decline seen in dollar index
Meanwhile, the dollar index, which reflects the position of the US dollar against six major currencies, declined by 0.15 percent to 107.89. International standard Brent crude rose 0.48 percent to $ 79.67 per barrel. Due to fears of strict US policies, crude oil prices fell and reached $ 78 per barrel. This is a decline of four percent from the recent high after President Trump mentioned increasing US oil production.
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