Rupee gains in the market against the US dollar. On early Wednesday, the global risk asset’s rally is tracked to follow the currency values. The Indian rupee recovered after it hit 80 per dollar for the first time on 19 July 2022.
It depreciated the most for the last seven sessions. The increase in value stopped the seven sessions from the losses.
Bloomberg quoted the price of the rupee at 79.9413 per dollar after opening at 79.9187. The currency is trading in the range of 79.9175 to 79.9450 in the market.
The Indian currency fell to its all-time low yesterday. It was 80.0600 per dollar, which was the lowest for the previous session. But, the Indian rupee recovered and closed at 79.9487.
The appreciation of the rupee happens as the Reserve Bank of India intervenes in the forex market to keep the rupee steady. PTI reports that the rupee gained two paise and reached 79.94 per dollar in the early trade.
On Tuesday, the Indian rupee closed at 79.92 before reaching the 79.94 value.
Business Standard reports that the rupee increased by six paise. Thus, reaching 79.76 against the US dollar in the early trade on Monday. It was a positive trend in the value of the rupee.
But Tuesday brought a great loss for Indian traders. The currency reached its all-time low of 80 per dollar.
The depreciation and appreciation of the rupee have a great impact on the financial stability of the Indian market. Depreciation is the fall in currency value in the floating exchange rate.
In contrast, appreciation is the increase in the value of the rupee using the same system of exchange rates. This is because the floating exchange rate system works on the demand and supply of the currency.
Hence, the depreciation is the fall of value against the US dollar. It implies that the rupee has less value in the market against the dollar. In comparison, the appreciation of currency strengthens the rupee against the dollar.
Changes in the rupee highly impacts the various sectors of the market. It can be the stock market, forex or IT.
RBI is responsible for keeping the value of the rupee stable in the financial markets.
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