The biggest jump in the rupee came in one year, the Indian currency strengthened by 50 paise against the dollar

Today, the rupee recorded a strength of 50 paise against the dollar and closed at 79.25.  This is the biggest jump in the rupee in the last one year.  On Thursday, the rupee had gained 22 paise.  Traders said weakness in the US currency also supported the rupee.  The effect of strengthening the sentiment has also been shown on the Indian stock market.  Today, the stock market was bullish for the third consecutive trading session.  Nifty closed at three-month high.  In these three trading sessions, a huge jump of 2302 points has been registered in the Sensex.  There has been a jump of Rs 9 lakh crore in the assets of stock market investors in these three days.

Due to the strengthening of the dollar index, the sentiment about the rupee is getting stronger.  The dollar index was currently down 0.45 percent at the level of 105.72.  This index shows the performance of the dollar against the world's six major currencies.  According to the data available on the website of Oil Price, the price of crude oil in the international market is currently at $ 109.2 per barrel with a jump of 2.10 percent.  The price of WTI crude is up 1.86 percent at $ 98.28 per barrel.

 Inflation in Europe at new record high

In the 19 countries that use the euro currency, inflation reached a record 8.9 percent during the month of July.  Inflation has increased due to the rise in oil and gas prices due to the ongoing military crisis between Russia and Ukraine.  However, despite the rise in inflation, the economies of countries using the euro currency have shown some modest growth.  This inflation rate was 8.6 percent in June a month ago.  Inflation in these European countries is running at its highest level since 1997.  The economy of these countries has grown by 0.7 percent during the April-June quarter compared to the previous quarter.  Whereas the GDP growth rate was four percent compared to the same period a year ago.

Rupee supported by buying by foreign investors

Rahul Kalantari, Vice President, Mehta Equities said that the dollar index remains under pressure.  The US economy declined 0.90 percent in the June quarter.  The rupee is seeing strength amid the rise in the stock market.  Foreign investors are buying in the market, due to which the rupee is getting support.  US bond yields also declined, supporting emerging market currencies.