Dollar vs Rupee / Dollar defeated by the roar of rupee, so much money jumped, what will be the benefit?

The rupee strengthened by 39 paise to 85.71 against the US dollar on Tuesday due to a rise in the stock market and a fall in crude oil prices. The weak dollar index and the decision to defer tariffs supported it. This will make imports cheaper and provide relief to inflation.

Dollar vs Rupee: India's economic scenario took an encouraging turn on Tuesday, when the Indian rupee strengthened by 39 paise to 85.71 per dollar against the US dollar due to the tremendous rise in the stock market and the fall in crude oil prices internationally. The rupee opened strongly at 85.85 in the interbank foreign exchange market and came to 85.71 in early trade, which shows a significant jump compared to the previous closing price. It is worth noting that on Friday also the rupee closed with a gain of 58 paise at 86.10 per dollar.

Weakness remains in the dollar index

In the backdrop of this strength of the rupee, the decline in the dollar index has emerged as a major factor. The dollar index has been witnessing a continuous decline since the US adopted the policy of trade war. While this index was at a record level of 110 in January, now it has slipped to 99.46. In February it was at the level of 108, which makes it clear that the US currency is under pressure globally.

Who strengthened the rupee?

Forex experts believe that the weakness of the US dollar and the US decision to defer the additional 26 percent duty on India till July 9 have given strength to the rupee. Even though foreign investors are withdrawing capital from the Indian stock market - FIIs sold shares worth Rs 2,519.03 crore on Friday - the weakening of the US dollar and the fall in crude oil prices have supported the rupee. Brent crude fell 0.06% to $64.92 per barrel, which has raised the possibility of a reduction in India's import expenses.

What will the country benefit from a strong rupee?

The strength of the rupee has brought relief to the country on many fronts. The biggest benefit will come in the form of a reduction in the cost of imports, which will help curb inflation. Foreign education and tourism may now be slightly cheaper for Indians. Additionally, a strong rupee can attract global investors to India, which will increase both confidence and investment in the Indian economy.