Dollar vs Rupee / Dollar was left speechless by Zelensky's eye, Rupee took advantage

Dollar vs Rupee: An important meeting took place between the US President and Ukrainian President Volodymyr Zelensky to end the Russia-Ukraine war. However, the talks could not reach the expected peace solution as the heat between the two leaders increased. After the failure of this meeting, media institutions around the world presented their views on this dialogue. Some media institutions were seen standing in favor of former US President Donald Trump, while others supported Zelensky.

Effect of softening of dollar and crude oil

The poor results of this high-level dialogue also had an impact on the global economy. After the failure of the talks, the US dollar weakened against the six major currencies of the world. Economic experts believe that the increased heat between Trump and Zelensky has affected the confidence of investors, which affected the position of the dollar.

In terms of the Indian rupee, the weakening of the dollar showed slight strength. On Monday, the rupee strengthened by five paise against the US dollar in the interbank foreign exchange market and closed at 87.32 per dollar. However, investors did not see much enthusiasm due to volatile domestic stock markets and withdrawal of foreign funds.

Fluctuation in exchange rates

The rupee opened at 87.36 in the interbank foreign exchange market and reached a high of 87.25, while it finally closed at 87.32 per dollar after touching a low of 87.41. On Friday, the rupee had declined by 19 paise and closed at 87.37 per dollar.

Impact on Indian economy

India's manufacturing sector also saw some sluggishness. The HSBC India Manufacturing Purchasing Managers' Index (PMI) fell to 56.3 in February, down from 57.7 in January. The decline was due to sluggish growth in new orders and production.

Anuj Chaudhary, research analyst at Mirae Asset Sharekhan, said that the rupee got support from dollar sales by exporters. However, the rupee did not gain much strength due to selling pressure from FIIs (foreign institutional investors) and weak macroeconomic data.

Impact on global economy and market

The dollar index, which measures the US dollar against six major currencies of the world, fell 0.57 percent to 106.95. Apart from this, the global oil market also witnessed a softening, where Brent crude futures fell 0.49 percent to $ 72.45 per barrel.

The domestic stock market also witnessed a slight decline. The BSE Sensex closed 112.16 points lower at 73,085.94, while the Nifty fell 5.40 points to 22,119.30. According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 4,788.29 crore on Monday.

Conclusion

The failed talks on the Russia-Ukraine war not only impacted the geopolitical situation but also the global financial markets. The weakness of the dollar, slight strengthening of the Indian rupee and the fall in crude oil prices were a direct result of this tension. In the coming days, investors and analysts will keep a close eye on the development of the situation to see if any new diplomatic efforts succeed in resolving this deadlock.