Rupee strengthens, reaches almost three-week high against dollar

Due to the rise in the domestic stock market and increase in share purchases of foreign investors, the rupee opened strongly on Friday. The rupee climbed 30 paise to 79.39 against the US dollar in early trade. With this, the rupee reached its almost three-week high since July 11. Rupee got support due to weak dollar. The rupee opened higher at 79.55 per dollar on the Interbank Foreign Exchange. After this, it jumped further and compared to the previous closing, it rose by 30 paise to reach Rs 79.39 per dollar. On Thursday, the rupee had closed at 79.69 against the US currency.

Meanwhile, the dollar index, reflecting the US dollar’s position against the six major currencies, declined 0.30 per cent to 106.03.

Global oil index Brent crude futures fell 0.11 percent to $107.02 a barrel.

According to stock market data, foreign institutional investors bought shares worth Rs 1,637.69 crore on Thursday.

According to Sugandha Sachdeva, Vice President, Commodity and Currency Research, Religare Broking, the Indian rupee has managed to gain about 0.30 percent. The dollar weakened after the US Federal Reserve softened its aggressive stance, which supported the rupee.

Here, Saugata Bhattacharya, Chief Economist of Axis Bank, told on Thursday that the Monetary Policy Committee of the Reserve Bank may increase the repo rate by 0.35-0.50 percent next week. The US Federal Reserve Bank has increased the benchmark rate by 0.75 percent for the third time in a row.