Rupee Vs Dollar: Rupee strengthened against dollar, Indian currency got new lease of life due to fall of crude oil.

Once again a spectacular recovery was seen in the Indian currency rupee on Thursday. The rupee closed stronger against the US dollar amid the important meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) and the softening of crude oil prices in the international market. The entire market is keeping a close eye on the RBI’s interest rate decision on June 5. However, due to the increasing geopolitical tension between the US and Iran, the energy market continued to be volatile, which slightly restrained the rupee.

Rupee strengthened against dollar, recovered from previous day’s weakness

In the interbank foreign exchange market, the Indian rupee opened at 95.70 against the US dollar on Thursday. The rupee witnessed a high of 95.59 and a low of 95.87 during the day’s volatile trading. At the time of market closing, the rupee closed at 95.74 per dollar, which is 2 paise stronger than the previous closing price. Just a day before this, on Wednesday, there was a big fall in the rupee and it weakened by 40 paise and closed at 95.76 per dollar.

America-Iran crisis becomes a headache, India’s concern increases

Forex market experts and experts say that the ongoing tension in West Asia (Middle East) remains a matter of great concern for India. India is largely dependent on crude oil imports to meet its energy and fuel needs. Due to the increasing tension between America and Iran, investors around the world are now running towards safer investment options, which has created an environment of instability in the global financial market.

All eyes on Governor Sanjay Malhotra’s decision, big estimate on repo rate

Now everyone’s eyes are on the big decision of the Monetary Policy Committee (MPC) of RBI. The six-member committee led by RBI Governor Sanjay Malhotra will announce its interest rates on June 5. Economic experts believe that due to the US-Iran crisis, pressure on both inflation and economic growth may increase in the country. In view of such critical circumstances, the Reserve Bank may decide to maintain the repo rate at 5.25% for the time being.

Dollar index and crude oil prices declined

During this trading week, the dollar index, which measures the strength of the US dollar against six major currencies of the world, was seen trading at 99.31 with a decline of 0.21%. Along with this, there was another good news for the Indian market that the price of global oil benchmark Brent Crude also fell by 2.04% to $ 95.81 per barrel, which supported the rupee.

How will the rupee move in future? Expert told complete mathematics

According to Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan, due to the ongoing geopolitical tension in the global market and the strengthening of US bond yields, some pressure may be seen on the Indian rupee in the future. However, if there is a positive turn in the talks between America and Iran, then it will provide tremendous support to the rupee.

He further said that investors will closely track US employment data and RBI monetary policy in the coming days. According to Anuj Chaudhary, the dollar-rupee exchange rate may be seen hovering between the range of 95.40 to 96.15 in the coming time.

Stock market remained sluggish, foreign investors sold heavily

Very slow and limited growth was seen in the domestic stock market on Thursday. Bombay Stock Exchange’s Sensex closed at 74,360.01 with a gain of marginal 13.84 points. At the same time, Nifty of National Stock Exchange also increased by just 10.95 points to reach the level of 23,416.55. Amidst this slowdown, foreign institutional investors (FIIs) withdrew their money from the market and made a huge sale of shares worth a net Rs 4,447.06 crore on Thursday.