The reserve currency, the Indian rupee, gained 6 paise to 83. 31 against the US dollar on Tuesday, rising from the gains in the international market of crude oil. However, this rise in the rupee against the dollar did not stop forex traders from foreshadowing other reasons for the rupee’s resistance, such as subdued sentiments of the domestic equity market and a strong dollar against the rupee.
The Indian rupee opened at 83.32 against the US dollar in the Interbank exchange market and went up to 83.31, which also marked an improvement of 6 paise compared to the previous closing level. On the previous market day, last Friday, the Indian rupee closed at 83.37 after gaining 13 paise against the US dollar.
On the other hand, the dollar index, which measures the value of six Asian currencies against the US dollar, also went up by 0.11% to reach 104.57. Some analysts suggested that the dollar strengthened because of higher yields on US Treasury notes despite the Fed’s comment on inflation data on the need to make all-inclusive conclusions.
Going to the commodities market, the Brent Crude Futures, which is the global benchmark for the oil, also declined by 0.54% to end up at 83.26 US dollars per barrel.
In the Indian stock market, the BSE Sensex traded 0.10% or 71.18 points lower at 73,934.76 points. Also the NSE Nifty 50 was trading lower by 12 points or 0.05% of the market value at 22,490.00 points. Therefore, the performance of the Indian stock market also contributed to the gains made by the rupee.
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