New Delhi, April 23 (H.S.): The rupee closed at 85.42 (temporary) against the dollar, weakening by 21 paise due to increased demand for the dollar in the currency market and negative sentiments arising from the recent terrorist attack in Jammu and Kashmir. The Indian currency weakened by up to 32 paise during the day’s trading, but later, due to increased dollar inflow, the rupee managed to recover 11 paise against the dollar by the end of trading. On the previous trading day, Tuesday, the Indian currency had closed at 85.21 rupees per dollar.

This morning, the Indian currency started trading at a level of 85.26 rupees, weaker by 5 paise against the dollar. During the day’s trading, as demand for the dollar increased, the rupee fell to a level of 85.53, down by 32 paise. However, following aggressive buying by foreign portfolio investors in the stock market, dollar inflows increased, allowing the rupee to recover 11 paise from its lower level.

The Indian currency also showed strength against most other major international currencies alongside the dollar. After today’s trading, the rupee reached a level of 113.80 against the British Pound (GBP), appreciating by 10 paise. Similarly, against the euro, the rupee gained 35 paise, reaching a level of 97.53.

Market experts say that while the demand for dollars has certainly increased due to rising demand from importers, positive signals for the rupee are also coming from the stock market. The continuous increase in foreign investments in the domestic stock market has raised expectations that the rupee will trade with positive sentiments in the coming days. Most importantly, the dollar index has been consistently showing weakness, leading to hopes of support for the rupee. On the other hand, the continuous rise in crude oil prices in the international market could increase the oil import bill, which might negatively affect the rupee by adding pressure on it.

Hindusthan Samachar / Jun Sarkar