Rupees Vs Dollar: The country’s top bank Reserve Bank of India has started trying to control the weakening rupee against the dollar. It is being told in a report that RBI is planning to spend about 30 billion dollars from foreign exchange reserves to stabilize the position of rupee in the market. At present India’s foreign exchange reserves are about 594 billion dollars. A report by Deutsche Bank says that even after spending this amount, India will still have enough currency reserves with which it can pay the import bill for the next 10 months. The report said that the rupee is trading around its all-time low of 83.30 against the US dollar. The Reserve Bank is actively intervening in the foreign exchange market to reduce volatility.
Inflation will reduce due to fall in vegetable prices
The brokerage said in its report that RBI can easily spend at least $30 billion to strengthen the rupee. The rupee closed five paise stronger at 83.06 against the dollar at the end of trading on Thursday. The brokerage also estimates that due to the fall in vegetable prices, the overall inflation will come down sharply to five percent in September, which was 6.8 percent in August. It said that the global crude oil price will increase to $ 95 per barrel. It is done. It said that, however, despite the pressure on global crude oil, there is no possibility of change in fuel prices in the coming months due to the state assembly elections and subsequent Lok Sabha elections. The report said that the Central Government has recently reduced the price of domestic LPG by Rs 200, which will reduce consumer price index based inflation by a quarter percent.
Inflation will be affected by increase in crude oil prices
According to the report, a 10 percent increase in crude oil prices can affect inflation by 0.30 percent. Reiterating its outlook for gross domestic product (GDP) growth at 6.2 per cent in FY 2022-24, the brokerage said if domestic prices of petrol and diesel are not increased, it is unlikely to impact growth projections. .
Rupee rises by five paise at 83.06 per dollar
In the interbank foreign exchange market, the rupee on Thursday rose by five paise to close at 83.06 (provisional) against the US dollar. Rupee got support due to softening of crude oil prices. Forex traders said the rupee also came under pressure due to the rise in the dollar index following tough comments from US Federal Reserve officials. He said that investors remain cautious ahead of the policy decisions of the Bank of England and Bank of Japan. In the interbank foreign exchange market, the rupee opened strong at 83.16 against the dollar and remained in the range of 83.02-83.17 in the day’s trade. At the end of trading, the rupee closed at 83.06 (provisional) against the dollar, which is an increase of five paise from the previous closing price.
Rupee had reached the abyss
The rupee had recovered from the all-time low on Wednesday and closed 21 paise higher at 83.11 per dollar. Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, rose 0.18 percent to 105.51. Global oil benchmark Brent crude futures were down 1.05 percent at $92.55 per barrel. The BSE Sensex fell 570.60 points or 0.85 per cent to 66,230.24, while the Nifty fell 159.05 points or 0.8 per cent to 19,742.35. According to stock market data, foreign institutional investors (FIIs) sold shares worth a net Rs 3,110.69 crore on Monday.