Rupee closes strong at 86.3225, rises against dollar

Rupee rises against US dollar, closes at 86.3225

On Wednesday, the Indian rupee strengthened against the US dollar, closing at 86.3225. Analysts attribute this strength to the rise in Asian currencies. Additionally, dollar-rupee forward premiums also declined due to dollar-rupee buy/sell swaps by the Reserve Bank of India. Let us tell you, that the rupee has got support due to the rise in Asian currencies and the actions of the RBI. Market intervention by the RBI through dollar-rupee buy/sell swaps stabilized the rupee and reduced forward premiums. Importers have taken a sigh of relief after this strengthening, which is why they will now have to pay less rupees against the dollar. At the same time, this situation challenges exporters, because they will get less rupees than the exports made in dollars. Market experts believe that this movement of rupee will be influenced by global economic activities and the attitude of foreign investors. RBI policies and market interventions will also play an important role in deciding the direction of the rupee.