Business Desk: Despite the speed in the stock market, the Indian Rupee closed with a significant drop on Monday. Against the US Dollar, the Rupee closed at 88.26, down by 43 paise. The main reasons for this are the increase in crude oil prices at the end of the month and the increase in demand for the Dollar due to imports.
Interbank foreign exchange market opened at 87.87 and closed at 88.31 during the day on the lower level. It had closed at 87.83 on Friday. According to forex traders, the increase in crude oil prices due to the escalating US-China trade talks has strengthened the Dollar and put pressure on the Rupee. The Dollar index rose 0.08% to 98.86, while Brent crude oil fell 0.85% to $65.39 per barrel.
The stock market remained strong, with Sensex reaching 84,778 with a gain of 566 points, and Nifty closed at 25,966 with a gain of 171 points. According to RBI, foreign investors bought shares worth ₹621 crore on Friday, while India’s foreign exchange reserves increased to $702.28 billion.
Asset share analyst Anuj Chaudhary stated that despite the strong domestic market and political tensions easing, Rupee can be supported in the coming days. However, high crude oil prices and Dollar demand can limit its upside. He hopes that in the near future, the Rupee will remain in the range of 87.80 to 88.50.
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