Indian Currency: The rupee opened at 88.79 against the dollar in the interbank foreign exchange market and later touched 88.67 per dollar, showing a rise of six paise over the previous close.
Rupee strengthens amid hopes of US-India trade deal, shows dollar its place in currency ring.
Rupee vs. Dollar: The Indian currency is strengthening amid hopes of a potential trade deal between the United States and India. Trading in a narrow range on Tuesday morning, the rupee gained six paise to 88.67 against the US dollar.
Forex traders said the dollar weakened due to concerns about the long-term health of the US economy, supporting the rupee at lower levels. However, a weakening domestic stock market and foreign capital outflows negatively impacted investor sentiment.
Rupee strengthens
The rupee opened at 88.79 against the dollar in the interbank foreign exchange market and later rose to 88.67, a gain of six paise from its previous close. It later traded at 88.71. On Monday, the rupee had closed at 88.73. Meanwhile, the dollar index, which gauges the dollar's strength against six major currencies, rose marginally by 0.06 percent to 99.65.
In its research note, IFA said that recent statements by US President Donald Trump have raised hopes of an early end to the ongoing US shutdown. Trump indicated that the US may ease some of the tariffs imposed on India, as India has reduced its purchases of crude oil from Russia.
He also said that the US is very close to a significant trade deal with India. According to Trump, this deal will be significantly different and more comprehensive than previous trade agreements.
crashing market
Domestic stock markets declined on Tuesday. The 30-share BSE Sensex fell 175.32 points to 83,360.03 in early trade, while the NSE Nifty 50 also slipped 51.60 points to 25,522.75.
In the international market, Brent crude was trading down 0.14 percent at $63.97 per barrel. Meanwhile, according to stock market data, foreign institutional investors (FIIs) were sellers on Monday, selling shares worth a net Rs 4,114.85 crore.
