The Indian rupee rebounded dramatically on its lowest point against the U.S. dollar, improving by 36 pais on Tuesday to close at 91.85 (provisional). Forex traders attribute the rebound to have been greatly assisted by a sharp fall in global crude oil prices and a rise in moods among the local financial markets.
In the interbank foreign exchange market, rupee was trading at 91.92 against the U.S dollar. It was trading at a range of 91.71 to 92.19 throughout the trading session before it closed at 91.85 at the end of the day. The appreciation was a big step forward since its last close, indicating the investors were regaining trust in the local currency.
According to market analysts, a drastic decline in the price of international crude oil helped the rupee. The world oil standard, which is called Brent crude, dropped by approximately 8.31 per cent to average USD 90.74 per barrel in the futures trade. The downfall followed the expectation of possible de-escalation of the current conflict involving the United States, Israel, and Iran which previously caused instability in the global markets.
The recovery of the rupee was also caused by a weaker U.S. dollar in the international markets. The dollar index that is used to gauge the strength of the greenback in reference to a basket of six major currencies fell by 0.52 percent to 98.65.
The local equity markets were also recording excellent returns, which strengthened the rupee. Sensex shot up by 639.82 points to end at 78,205.98 and the Nifty rose by 233.55 points to close at 24,261.60.
Nevertheless, the foreign institutional investors were still reserved with exchange information indicating that they sold equities worth ₹6,345.57 crore in net value on Monday. Although, the rupee has been able to cling back to its feet since global and domestic signals shifted towards the positive.
Join our whatsapp group for Latest updates
Click Here for Chhattisgarh News
Click Here for Entertainment News