Closes at 93.04 with a Gain of 14 Paise; Impact of RBI’s Strict Measures Begins to Show
Rupee vs Dollar: Driven by the RBI’s intervention and a rally in the stock market, the Rupee closed at 93.04 against the US Dollar on Monday. However, elevated crude oil prices and continued selling by foreign investors continue to exert pressure on the Rupee. Meanwhile, the stock market also witnessed a significant surge, with the Sensex closing 787 points higher and the Nifty gaining 255 points.
Rupee vs Dollar: Despite ongoing volatility in global markets, the Indian Rupee appeared to stabilize on Monday. Against the US Dollar, the Rupee appreciated by 14 paise to close at the 93.04 level (provisional). Measures taken by the RBI last week to curb speculative trading have provided support to the domestic currency.
The RBI Cracks the Whip
The Rupee had been in a continuous decline over the past few days; in response, the Reserve Bank has tightened the reins on speculative trading within the currency market. Consequently, the Rupee witnessed a significant recovery last Thursday—a positive momentum that was sustained through Monday.
Robust Recovery in the Stock Market
Monday saw intense buying activity across the Indian stock markets. The Sensex closed at 74,106, while the Nifty settled at 22,968. This market rally boosted investor confidence, which, in turn, had a positive impact on the value of the Rupee.
Crude Oil and Trump’s Deadline
Currently, Brent Crude is trading around $107.29 per barrel. All eyes across the globe are fixed on US President Donald Trump, who has set a deadline for the reopening of the Strait of Hormuz. If this vital shipping lane reopens, oil prices could decline, thereby providing further strength to the Rupee.
Selling by Foreign Investors Continues
Although the Rupee has shown signs of recovery, the challenges facing it are far from over. Foreign Institutional Investors (FIIs) are continuously withdrawing funds from the Indian market. Just last Thursday, they sold shares worth approximately ₹9,931 crore.
