After the steep decline in the cost of crude in the latest session in the worldwide market, the rupee recovered on Tuesday. The rupee increased by 14 paise against the dollar in new trade on Tuesday. With this, the rupee breached 14 paise higher at Rs 70.73 per dollar versus the dollar. The rupee had settled 31 paise down at 70.87 in the earlier session due to the position of the dollar in the global market. The strength of the dollar was also maintained on Tuesday. The dollar index settled above 99 due to the strengthening of the dollar against the main currencies of the world, including Pound and Euro.
As per currency market analysts, due to the strengthening of the dollar in the world market, the rupee will not gain any strength, but the domestic and international stock market will increase support for the rupee. According to Ramesh Varkhedkar, CEO of Karvy Comtrade, the rupee has gained support in the global market due to the fall in the price of crude oil in the previous session. The dollar index, which was indicative of the strength of the dollar against the six major currencies of the world, was up 12 % at 99.14.
Traders said the opening of the domestic stock market in the bull market also strengthened the rupee. Besides, the softening of the dollar against other major currencies also strengthened the rupee. However, the rupee remained under pressure due to the continued withdrawal of foreign investors and rising crude oil prices.
The expectation of a trade deal between the US and China ahead of speculation boosted investor sentiment. Due to this, the rupee strengthened 14 paise to Rs 70.90 per dollar in early trade on Thursday.
Traders said investors' sentiments were boosted after US President Donald Trump's statement. Earlier, Trump told a trade deal with China could be reached more previously than anticipated.
On Wednesday, the rupee had lost three paise to close at 71.04 per dollar.
Traders said the opening of the domestic stock market in the bull market also strengthened the rupee. Also, the softening of the dollar against other primary currencies strengthened the rupee. However, the rupee remained under pressure due to the continued withdrawal of foreign investors and rising crude oil prices.
According to preliminary data, foreign portfolio investors (FPIs) made a net withdrawal of Rs 342.40 crore on Wednesday.