The BRICS TimesGlobal market uncertainty caused a massive sell-off last week, pushing the Rupee down by 98 paise on Friday. However, the currency bounced back strongly today from that record low of 89.66 per Dollar.
The Indian Rupee has returned with strength at the start of the new week. This recovery comes after it hit a record low on the last trading day. The currency showed a jump as soon as the markets opened on Monday morning. It gained 49 paise to reach 89.17 against the Dollar. The currency opened at 89.46 earlier in the day. It saw a good recovery against the Dollar after that. Softening crude oil prices have provided major support to the Rupee. This has helped the Indian currency gain about half a rupee compared to the previous closing price.
Reasons Behind the Strong Recovery
Demand for the Dollar rose sharply last week amid global and domestic market selling. This uncertainty caused the Rupee to crash by 98 paise on Friday. It had closed at an all-time low of 89.66 per Dollar. The Dollar Index shows the strength of the greenback against six major currencies. It remains steady with a slight gain at 100.18. Despite this factor, the Rupee showed a strong comeback on Monday.
Domestic Markets Show Early Gains
The local stock markets also showed a positive trend in early trade. The BSE Sensex jumped 218.44 points to open at 85,450.36. Meanwhile, the NSE Nifty climbed 69.4 points to reach 26,137.55. This improvement in the market sentiment also supported the Rupee.
Impact of Falling Crude Oil Prices
Brent crude prices fell by 0.10 percent to trade at 62.50 dollars per barrel. A drop in crude oil prices is always positive for the Rupee. This is because India spends a large part of its import bill on oil. Foreign investors still remain cautious about the market. FIIs sold shares worth 1,766 crore rupees on Friday. Yet, the dip in oil prices gave the Rupee much-needed relief.
