Rupee Strengthens for Seventh Consecutive Session on September 20, 2024

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Abhishek Mukherjee
Abhishek Mukherjeehttps://www.hospitalitycareerprofile.com/
Abhishek Mukherjee is a seasoned market analyst with a deep understanding of financial trends and economic shifts. With years of experience in the field, Abhishek brings insightful analysis and up-to-date market news to help readers stay informed. His expertise spans stock markets, financial forecasts, and economic policy changes, making him a trusted voice in the industry.
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The Indian rupee has shown impressive growth for the seventh straight session. On Friday, September 20, 2024, it settled 13 paise higher at 83.52 against the US dollar. This rise comes amid strong domestic equity markets and declining crude oil prices, which have lifted investors’ spirits.

Forex traders report that a general weakness in the US dollar against other Asian currencies has also aided the rupee. They noted that the dollar index has dropped due to changing investor interest. Recently, the US Federal Reserve lowered the benchmark interest rate by 0.50 percent. This decision has shifted focus towards emerging market currencies, including the Indian rupee.

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In the interbank foreign exchange market, the Indian currency opened at 83.63. Throughout the day, it reached an intra-day high of 83.48. However, it also touched a low of 83.63 before finally settling at 83.52 against the dollar. This represented a gain of 13 paise from the previous close, showing the rupee’s strength.

Several factors contributed to this trend. First, the domestic equity markets are performing well. Strong corporate earnings and positive economic data have encouraged investors to engage more with Indian assets. As stocks rise, there is often an increased demand for the rupee, which helps it gain value against the dollar.

Second, the decline in crude oil prices plays a significant role. India is a major importer of oil, and lower oil prices help reduce the country’s trade deficit. A smaller trade deficit can strengthen the rupee, as it decreases the need for dollars to pay for imports.

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Additionally, the recent actions of the US Federal Reserve have impacted global markets. The decision to lower interest rates means that US assets may yield less return, prompting investors to look elsewhere. Many are turning to emerging markets, which often offer better growth potential. This shift is beneficial for the Indian rupee, as it attracts foreign investments.

The rupee’s strength is also linked to its performance against a basket of currencies. A weaker dollar against Asian currencies indicates a broader trend that supports the rupee. Investors tend to favor currencies from countries with strong economic indicators, and India fits that profile at the moment.

Overall, the rupee’s rise reflects both domestic and international factors. The positive sentiment in Indian markets, combined with global shifts in investment strategies, has resulted in a stronger currency. The market will continue to monitor these trends closely. If domestic economic indicators remain strong and global conditions favor emerging markets, the rupee may continue its upward trajectory.

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