Dollar vs Rupee / Dollar loses to rupee, gives second biggest blow in 2 months

Dollar vs Rupee: "The speed should be such that the whole world is surprised to see it!" These lines perfectly fit the situation of the Indian rupee at this time. The jump that the rupee made against the dollar on Friday, March 11, created a stir in the financial market and surprised the analysts. This was the second biggest strength in the last two months, which brought the Indian currency to the center of the global currency market.

The rupee broke the limits of growth

If we look at the figures, the rupee closed 68 paise stronger on February 11, and now on March 11, the rupee touched the level of 86.07 with a gain of 61 paise. However, at the beginning of the trading session itself, the rupee had shown a gain of 51 paise, and there were expectations that it would break all the old records. Although this did not happen, but this growth definitely surprised everyone.

The fall in the dollar index paved the way

According to experts, this rise in the rupee was not one-sided, but the sharp fall in the dollar index also contributed to it. The dollar index fell 1.52% to 99.335, slipping below 100 for the first time in the last three years. This further strengthened the rupee against the US. If this trend continues, the rupee can reach 83 or even better in the future.

Impact of international events

A major reason for this strength is the postponement of the 26% tariff imposed on India by US President Donald Trump till July. This decision increased the confidence of investors, which supported the rupee. At the same time, China's imposition of 125% tariff on US exports created additional pressure on the dollar, due to which the global currency equation seemed to be tilting in India's favor.

Stock market also supported

This excellent performance of the rupee was also supported by the strength of the domestic stock market. A gain of 1,310 points in the BSE Sensex and a jump of 429 points in the Nifty showed that the morale of investors is high. Although foreign investors sold Rs 4,358 crore, its impact on both the market and the currency was limited.

Rupee future: What will be the trend?

Anil Kumar Bhasali, Treasury Head, Finrex Treasury Advisors LLP, believes that the rupee is currently moving in a strong direction. Next week, after the holiday, the rupee is likely to remain in the range of 85.75 to 86.25. If the dollar index remains under pressure like this, then the Indian rupee can maintain its momentum.