The Indian rupee demonstrated great resilience when it recovered from its all-time low and declined the fall by 29 paise. It climbed to 83.32 against the US dollar in the early trade on Tuesday. The domestic currency registered a positive start at the interbank foreign exchange market, and it gained when the market opened at 83.33 against the dollar. It then moved up to 83.32 against the greenback during the initial deals. It was a widely celebrated movement, resulting in a surge of 29 paise.
Even on Friday, the rupee had undergone a severe depreciation wherein the currency value had declined by 48 paise, contributing to an all-time low of 83.61 per dollar. Investors who couldn’t trade on the forex or stock market on Monday due to the celebrations of Holi were keenly looking forward to markets’ re-opening to estimate the Indian currency movements.
In sum, market analysts reported that the register levels of forex reserves helped RBI (Reserve Bank of India) to create a safety net adjusted for the effect of the depreciation in terms of the rupee. Reserve Bank of India’s strategic buying signals it is dedicated to safeguarding the Runs by, at the same time, supporting the exports and driving the production domestically.
On Friday, the central bank announced some information about India’s forex reserves and found that between March 8 and March 15, the reserves increased by USD 6.396 billion to USD 642.492 billion. The previous reporting week saw the overall reserves level up by USD 10.47 billion to USD 636.095 billion.
As these events heightened, the dollar index rate (which measures the strength of the greenback against a basket of six major currencies) was down 0.01%. On the other hand, Brent crude futures contracts, the world’s major oil benchmark, dipped slightly by 0.07% to settle at 86.69 dollars per barrel.
BDS came in the positive zone with a rise of 808.73 points or 1.11% and closed the trade at 74,071.25. Meanwhile, the 30-share BSE Sensex traded lower by 265.68 points or 0.36%, losing to finish at 72,566.26 points. On the other hand, the BSE SENSEX was the only one with minor gains; the NSE Nifty went down by 60.95 points or 0.28 per cent and closed at 22,035.80 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday, net-wise data exchange showed, as these investors booked Rs 3,309.76 crore by selling their shares.
Market participants closely monitor breathing holes, and it becomes apparent how global factors determine the rupee’s recovery route in the following days.
