The dollar index, which measures the strength of the dollar against the world’s six major currencies, fell 0.23 percent to 104.95. On the other hand, there has been a slight increase in crude oil.
Image Credit source: Twitter
The rupee remains weak against the dollar and once again the domestic currency is moving towards the level of 80. The rupee on Thursday declined by 37 paise to close at 79.62 per dollar against the US dollar in the interbank foreign exchange market. This fall in the rupee has been registered despite continued capital inflows and a rally in the domestic stock market. The rupee opened at 79.22 in the interbank foreign exchange market. At one time during trading, it was also at a high of 79.22 and a low of 79.94. at the end of business Rupee It closed at 79.62 per dollar, down by 37 paise. Due to this, the rupee had closed at 79.25 per dollar in the previous trading session.
Mixed performance possible in short term
Market sources said that the trend of trading in rupee is likely to be mixed in the short term. The recovery from its lower levels in the domestic market and increased investment by foreign institutional investors may support the rupee. Meanwhile, the dollar index, which measures the strength of the dollar against the world’s six major currencies, fell 0.23 per cent to 104.95. Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities Limited said, “Investors have been cheered by the US inflation data for July, which has been lower than expected. In such a situation, it is expected that the Federal Reserve will not increase interest rates aggressively in its next meeting. Traders said that investors will now be watching macroeconomic data like Index of Industrial Production (IIP), Consumer Price Index (CPI) and balance of trade coming on Friday for further cues.
what will be the effect on you
The weakening of the rupee will reduce the impact of any shortfall in the commodity imported from the international market. In such a situation, it will take more time to get the benefit of the fall in crude oil because the depreciation of rupee in the midst of fall in prices will increase the import bill and this will continue to burden the exchequer. A good situation for India will be when the commodity prices fall in the international market, while the rupee also remains strong. If this does not happen, then India will not get the full benefit of reduction in commodity prices. International oil standard Brent crude rose 0.84 percent to $98.22 per barrel.