The Indian rupee gained its biggest strength in the last few weeks as the dollar weakened due to US President Donald Trump’s decision to postpone the attack on Iran. Some other reasons are playing an important role in this.
Another major reason for the rupee’s strength
The three-day meeting of the Reserve Bank of India’s Monetary Policy Committee is also here. The markets are confident that the Reserve Bank will keep the interest rate unchanged at 5.25%, which has increased the liquidity of the rupee. Besides, the fall in crude oil prices has given a boost to the market, which has led to a rally in Indian stocks today. This positive sentiment has led to increased dollar inflows into Indian equities from foreign institutional investors (FIIs).
Stock market rally
The rupee rose for the fifth consecutive session on Friday and closed at 95.43 per dollar, up seven paise. Meanwhile, the dollar index, which measures the value of the dollar against six major currencies, fell 0.17% to 99.74. In domestic stock markets, the Sensex rose 470.06 points to 78,564.70 in early trade, while the Nifty rose 150 points to 24,532.95. International oil benchmark Brent crude futures fell 5.0% to $83.66 per barrel. According to stock market data, foreign investors bought shares worth a net ₹277.48 crore on Friday.
What will be the impact on the general public?
With the rupee strengthening and crude oil prices falling, it will be cheaper for India to import everything from crude oil to electronics, raw materials and edible oil, which could ease retail inflation in the coming weeks.
In addition, a stronger rupee will also make it cheaper to travel abroad, study abroad or seek medical treatment, as you will have to pay fewer fees or travel charges in Indian rupees compared to dollars.
EPFO Scam Case: Big Scam! 1816 Crores Fraud in EPFO! FIR filed against Anil Ambani and Reliance Capital