Indian Rupee News / Rupee is fighting a war with two enemies, the world is stunned to see these figures

Indian Rupee News: While the war between Iran and Israel is in its fierce form, another conflict is going on in the global market—the Indian rupee is fighting two major economic enemies simultaneously: rising crude oil prices and dollar pressure. Surprisingly, the rupee seems to be emerging strongly in this duel.

Two enemies, one war

This war of the rupee is with the prices of crude oil and the value of the US dollar. Due to the Iran-Israel war, the price of crude oil in the international market has seen a jump of up to 11%, which is natural to increase the pressure on the currency of an import-dependent country like India. At the same time, fluctuations in the dollar index also affect the stability of the rupee. On Friday, the rupee fell by 57 paise under this pressure.

Strength seen on Tuesday

Despite this, as soon as the market opened on Tuesday, the rupee strengthened by 11 paise to reach 85.93 per dollar. It opened at 85.96 in the Interbank Foreign Currency Exchange and later traded at 85.93. This indicates that the Reserve Bank of India (RBI)'s activism and the market conditions are supporting the rupee.

RBI's intervention and the role of foreign investors

RBI has supported the rupee by selling dollars at the level of 86.20, thereby averting the possibility of it going further down. However, foreign institutional investors (FIIs) sold shares worth Rs 2,539.42 crore on Monday, which led to weakness in the stock market—Sensex fell 127 points and Nifty 55 points.

Crude oil concerns persist

Brent crude prices rose 0.34% to $73.48 per barrel. If the war situation becomes more serious, oil prices may go up further, which may again put pressure on the rupee. Brent prices have also risen to $74 due to the US President's warning against Tehran.

Expert opinion

According to Anil Kumar Bhasali of Finrex Treasury Advisors, if the rupee closes above 86.20, then importers will have to take stop loss and the dollar profit can go up to 86.70. At present, RBI's strategy is handling this situation. He further said that the movement of rupee will depend on the direction of the war and the policies of RBI.