The rupee strengthened by three paise to close at 82.47 per dollar on Wednesday. This partial rise in the rupee has been seen after the Reserve Bank of India (RBI) increased the repo rate by 0.35 percent.
The rupee strengthened by three paise to close at 82.47 per dollar on Wednesday.
In the interbank foreign exchange market, the rupee strengthened by three paise to close at 82.47 per dollar on Wednesday against the American currency. This partial rise in the rupee has been seen after the Reserve Bank of India (RBI) increased the repo rate by 0.35 percent. According to the PTI report, market sources said that apart from this, softening of crude oil prices also supported the rupee.
The rupee opened at a level of 82.74 at the Interbank Foreign Exchange market and at the end of trading it closed at 82.47 per dollar with a gain of three paise. The rupee touched a high of 82.40 and a low of 82.75 during the day. In the previous trading session, the rupee had closed at 82.50 per dollar.
Understand the reason for the rise in rupee
Gaurang Somaiya, foreign exchange and bullion analyst at Motilal Oswal Financial Services, said that as expected, the Reserve Bank has increased the repo rate by another 0.35 per cent. It has also reduced the Gross Domestic Product (GDP) forecast for the financial year 2022-23 from 7 per cent to 6.8 per cent. Meanwhile, the dollar index, showing the strength of the dollar against six major currencies of the world, rose by 1.10 per cent to 105.68.
Global oil standard Brent crude futures declined 1.79 percent to $ 77.93 per barrel. Whereas, the 30-share BSE Sensex closed at 62,410.68, down 215.68 points. According to stock market data, foreign institutional investors (FIIs) were net sellers in the capital market and net sold shares worth Rs 635.35 crore on Tuesday.
How will the rupee affect you?
Let us tell you that the effect of rise and fall in rupee can be seen on the life of common people. This is also being seen in the form of inflation rate in recent times. Weakness in the rupee nullifies the effect of any shortfall in the commodity imported from the international market.
Due to this, it will take more time to get the benefit of the fall in crude oil, because in the midst of the fall in prices, the import bill will increase due to the weakness in the rupee and this will keep the burden on the exchequer.
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