Dollar vs Rupee: Rupee improves, reaches highest level in one month

The volatility in the rupee continues. The rupee on Tuesday strengthened by 12 paise against the US dollar in early trade. Indian Rupee hits 1-month high as Treasury rally. At the same time, there is a fear of recession on the dollar. The rupee rose 12 paise to 78.94 against the US dollar in early trade on Tuesday on foreign inflows and a weak greenback against major peers overseas. Dealers said softening crude oil prices strengthened the sentiment in the domestic forex market.

Rupee opens at 78.96 against US dollar

The rupee opened higher at 78.96 against the US dollar at the interbank foreign exchange on Tuesday and posted a rise of 12 paise over the previous close to bid at 78.94 in early trade. The rupee had closed at 79.06 against the US dollar in the previous session. At the same time, the dollar index, which gauges the greenback's strength against the six-currency basket, fell 0.22 per cent to 105.21.

Market and Brent crude futures fall in prices

Global oil benchmark Brent crude futures fell 1.05 per cent to $98.98 a barrel. However, the domestic equity market witnessed a decline in early trade. The 30-share Sensex was trading 88.55 points or 0.15 per cent lower at 58,026.95, while the broader NSE Nifty fell 35.65 points or 0.21 per cent to end at 17,304.40. Foreign institutional investors were net buyers in the capital market on Monday as they bought shares worth Rs 2,320.61 crore, according to exchange data.

Fears of a recession on the dollar

Let us tell you that after the aggressive monetary action of the Federal Reserve, there is a possibility of recession on the dollar. While foreign institutional investors are making a comeback in Indian equities, the dollar is seeing weakness after the Fed hiked interest rates.