Record rises in rupee against dollar, gains 40 paise and closes at 2-week high

According to currency experts, the rupee may reach 74.25 and 73.80 levels against the dollar in the event of the end of Russia and Ukraine tensions.

Record rise in rupee against dollar

against the dollar Rupees ,dollar vs rupee) has seen a record speed today. Rupee against dollar in Friday’s trade (rupee) strengthened by 40 paise, which is the fastest gain recorded in a single session during the last 3 months. In Friday’s trade, the rupee closed 40 paise higher at 74.66, which is the highest level of the rupee in more than two weeks, according to traders, Russia and Ukraine tensions are expected to resolve as well as crude oil (crude oil price) supported the rupee due to softening of prices. There are reports that Russia and Ukraine have agreed to talks to reduce tensions in the region. Due to which the domestic currency got relief.

how was today’s business

In the forex market, the Indian currency opened at 75.03 against the dollar and reached a day’s high of 74.60 during trading, while the rupee’s low of 75.05 was recorded during trading. At the end of trading, the rupee closed at 74.66, registering an increase of 40 paise or 0.53 per cent against the previous close of 75.06. The rupee had closed the session at 75.11 (provisional) on Thursday, but later settled at 75.06. The rupee has strengthened by 70 paise against the US currency during the week. In the domestic equity market, the BSE Sensex closed 59.04 points or 0.10 per cent lower at 57,832.97, while the NSE Nifty fell 28.30 points or 0.16 per cent to end at 17,276.30. Meanwhile, the dollar index, which measures the dollar’s performance against six currencies, rose 0.05 per cent to 95.84. Along with this, global oil benchmark Brent crude futures were trading 1.68 percent lower at US $ 91.41 per barrel.

What is the opinion of experts

Dilip Parmar, Research Analyst, HDFC Securities, said the proposed US-Russia talks have raised new hopes about the volatile geopolitical situation in Ukraine. Parmar said, “Amidst prolonged volatility in the dollar, falling crude oil prices and anticipation of dollar inflows from LIC IPO, the rupee recovered from last week’s fall and covered most of the losses this month. On the other hand, Sugandha Sachdeva, Vice President, Commodity and Currency Research, Religare Broking Ltd. said, “The rupee has gained about 0.50 per cent in Friday’s session amid rising hopes of a resolution to the Russia-Ukraine crisis.” Sachdeva said that crude oil prices have also seen a fall after eight consecutive weeks of gains, as apprehensions about the supply are now subsiding. This has further improved the sentiments for the domestic currency.

where can the rupee reach

According to Emkay Global Financial Services, any diplomatic success to end Russia-Ukraine tensions will further strengthen the rupee and the domestic currency may strengthen to the level of 74.25/73.80. On the other hand, in adverse conditions, the level of 75.76 will be seen only when the rupee reaches above the level of 75.4.

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