There is relief from the decrease in the inflation rate in India. The retail inflation rate stood at 5.88% in November. This figure of inflation has come within the prescribed range of RBI.
USD vs INR:
Due to the strong domestic signal, the Indian rupee is seeing strength against the US dollar. The value of US dollar decreased to 82.07 in Indian rupee in Intraday.
According to experts, the rupee can reach 81.50 to 81.70 in the coming days. Such a big boom in intraday was seen 2 months ago. Let us tell you that during today's trading, the Indian currency jumped up to 0.61% against USD.
What was the reason for the rise in rupee?
According to Anuj Gupta of IIFL SEC, there are many reasons for the strengthening of the rupee. This includes global cues as well as domestic triggers. Dollar index has come down to the lowest level of 7 months.
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Because the US Central Bank has indicated further increase in interest rates. Due to this, there is a sharp decline in the US dollar. Apart from this, domestic triggers are also supporting the rise of the Indian rupee.
Rupee getting support from domestic triggers
He told that there is relief from the decrease in the inflation rate in India. The retail inflation rate stood at 5.88% in November. This figure of inflation has come within the prescribed range of RBI. Indian currency is also getting support from this.
Along with this, the fall in crude prices is also an important trigger. Apart from this, the benefit of good rabi season is also being received. Because a good crop of mustard will reduce the import of edible oil.
Benefits of the strength of the Indian currency
• The cost of traveling and studying abroad will be less
• Import bill will be less, Medicine will become cheaper, Crude oil will become cheaper