On Tuesday, the rupee strengthened to reach below Rs 86 per dollar. It closed up 27 paise against the dollar. The rupee has strengthened with the hope of giving relief in the fee by US President Donald Trump. Finally, the rupee closed at 85.77 per dollar against the dollar, while it was earlier closed at 86.04 per dollar.
The dollar index remained at a low of 99.70, while it was first closed at 99.75. This shows the strength of the dollar compared to 6 major currencies.
According to Bloomberg data, the rupee strengthened to 85.59 against the dollar, but possibly the Reserve Bank intervened through dollar purchases, which changed the situation.
Treasury Head and Executive Director Anil Kumar Bhansali at the Finrex Treasury Advisors LLP said, “The rupee was strengthened again today as the dollar index was below 100 and the arrival of the dollar was more than its withdrawal.” It seems that the Reserve Bank intervened at 85.56 levels and fell to 85.85 and finally closed at 85.77. The rupee is going to be strong in the wide range of 84.50 to 86.50 with a decline in the dollar. The Reserve Bank can exercise to increase its store.
On the other hand, the yield of the government's bond reached the 40 -month low i.e. December 17, 2021 level. The dealers said that the Reserve Bank has announced to insert cash in the system as per the long -term. The benchmark yield closed at 6.41 percent, while it was closed at 6.44 percent earlier.
A government bank dealer said, 'Activation in pouring cash is a positive sign for the market. The Reserve Bank is doing what he promised. He said, “We are standing on the estimate of 6.25 percent (yield on benchmark bonds) by the end of June.”
The Reserve Bank on Friday announced to operate Open Market Operation (OMA) on 17 April to buy government securities worth Rs 40,000 crore. This is in addition to the MOM program of Rs 80,000 crore declared earlier.
First Published – April 15, 2025 | 10:40 PM IST
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