Six Factors Driving Indian Rupee Right Now!
Author : Devang Thakkar | Published On : 02 May 2021
Indian Rupee or INR has been largely supportive over last few days following a continued recovery as online equity trading remains tilted in favor of bullish local equities. The Rupee hit near one year high around 72 per US dollar in last week of February as local benchmark stock market indices hit fresh highs. The INR slipped thereafter though and tested a two month low near 74 per US dollar mark. The USD/INR derivatives are traded on major exchanges and could be traded through currency trading brokers in India. The INR stayed broadly supported thereafter though volatile equities capped the upmove. Here are the five important factors which are likely to shape up the overall price action for INR in coming weeks. The RBI plays a very important role in stabilising the Rupee.
Local Equity Markets: The local share markets have been mostly elevated in the last few months. After ending the year 2020 on a firm note, the benchmark Nifty 50 edged up further and hit a fresh all-time high in February 2021. A continued fall in daily Covid-19 cases and upbeat data on economic front which reflected a strong recovery worked in favor of the markets. Most share brokers offering online trading services are expecting local stock markets to stay supportive over the coming months. This is considered to be a highly positive factor for the INR as it indicates buying support from foreign institutional investors. Foreign Institutional investors have been big buyers in the Indian stock market as a result of which the Indian currency has been in demand thereby finding good support.
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