New Delhi. Today the rupee is trading with gains against the dollar. On Monday, the rupee had reached an all-time low. The rupee has recovered from the huge fall in the last session.
The Indian currency opened 25 paise higher at 83.84 against the US dollar. This reflects a surge in the stock market. However, aggressive dollar bids from foreign banks still put pressure on the rupee.
Forex traders said risk aversion in global markets, rising geopolitical tensions in the Middle East and withdrawals by foreign investors further hurt investor sentiment.
Rupee increased by 25 paise
The Indian currency opened at 83.92 at the interbank foreign exchange market and then touched an early high of 83.84. It registered a gain of 25 paise from its all-time low of 84.09 against the US dollar. On Monday, the rupee fell 37 paise to close at an all-time low of 84.09 against the US dollar.
The rupee is selling off in good times and bad, reflecting demand for the US dollar as foreign portfolio investors are exiting the Indian equity market due to high valuation concerns.
Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP
Status of Dollar Index
The dollar index rose 0.16 percent to 102.85 points. Global oil benchmark Brent crude was trading at US $ 77.15 per barrel. It may be affected due to fears of US recession. If there is any change in crude oil prices, it can affect the world’s largest oil consumer.
Boom in the stock market
Both the stock market indices are trading with gains. The BSE Sensex rose 903.63 points or 1.15 percent to 79,663.03 points, while the Nifty rose 270.50 points or 1.12 percent to 24,326.10 points. According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 10,073.75 crore on Monday.
