Dollar vs Rupee: Rupee strengthened against US dollar, rose by 63 paise to reach 95.73; rise for the second consecutive day

Dollar vs Rupee: The Indian rupee strengthened for the second consecutive trading session on Friday and gained 63 paise to temporarily close at 95.73 against the US dollar. The domestic currency was supported by softening crude oil prices, positive sentiment in local stock markets and expectations of Reserve Bank of India (RBI) intervention to curb excessive volatility.

The rupee opened at 96.30 per dollar in the interbank foreign exchange market and witnessed a sharp rise throughout the day. During trading, the rupee touched a high of 95.30 and a low of 95.68, after which it closed at 95.73. Earlier on Thursday, the rupee had strengthened by 50 paise from its record low closing level and closed at 96.36 per dollar.

‘Rupee improved due to RBI intervention’

According to an expert, this improvement is mainly due to the active intervention of RBI. RBI had announced USD/INR buy-sell swap. Apart from this, due to reduction in geopolitical tension, the prices of imported commodities have softened. Forex market experts said that the US Secretary of State marco rubio Investors’ confidence increased after the comment. He indicated that diplomatic efforts on the issue related to Iran are moving in a positive direction.

Effect of rise in stock market also visible

The statement eased concerns over possible disruption in the global energy market, which provided relief to emerging market currencies including the rupee. Fall in US Treasury yields and indian stock market The rupee also got support from the strengthening of Rs. Benchmark stock indices closed with gains. Sensex closed 231.99 points higher at 75,415.35, while Nifty gained 64.60 points to 23,719.30. However, market analysts warned that geopolitical developments still remained a major risk for the rupee.

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Indian rupee in positive position

An analyst said that the rupee remains positive in the near term. RBI intervention is playing an important role in controlling market fluctuations and restoring investor confidence. He further said that the rupee may remain in the range of 95.00 to 95.90 in the near term.