On Monday, the rupee rose sharply on the hope of improving macroeconomic data and continued investment by foreign investors. As per preliminary data, the rupee strengthened 16 paise to close at 72.49 per dollar in the interbanking currency market. At the beginning of trading, the rupee strengthened to open at 72.58 per dollar. It touched a high of 72.29 per dollar a day and a low of 72.58 a dollar during trading.
It eventually closed at 72.49 a dollar, an increase of 16 paise compared to the previous day’s closing price. The rupee had closed at Rs 72.65 per dollar on Thursday. On Friday, the foreign currency exchange market was closed on the occasion of Chhatrapati Shivaji Maharaj Jayanti. Meanwhile, the dollar strength index for the group of six major international currencies rose by 0.04 percent to 90.40.
On the domestic front, the BSE Sensex fell by 1,145.44 points, or 2.25 per cent, to close at 49,744.32. The NSE Nifty fell 306.05 points, or 2.04 percent, to close at 14,675.70. Foreign portfolio investors (FPIs) remained net buyers in the capital markets on Friday, according to stock market data. He bought shares worth Rs 118.75 crore on Friday. Brent crude futures, the benchmark for global crude, rose 0.57 per cent to US $ 63.27 per barrel.
These areas will benefit from the strengthening of the rupee
Impact on Crude Oil: This sector will get relief from the strength of the rupee, as it is imported. The import bill of crude oil will come down and foreign exchange will have to be spent less.
Capital goods and electronics will be cheaper: The strengthening of the rupee will also give relief to the sector, because the strengthening of the rupee will provide cheap capital goods in India. If the rupee is strong then the electronic sector will also benefit, because cheap electronic goons can be imported. The positive impact of the rupee’s strength will be visible on the gems and jewelery sector. This will make it cheaper and will also affect the imports.
Fertilizer prices will come down: India imports large quantities of essential fertilizers and chemicals. It will also be cheaper with the strength of the rupee. Importers will get more in this lower price. This will directly benefit the region. At the same time farmers will also benefit, their cost will be reduced, which will increase income.
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The strength of the rupee shocks these areas
IT Sector: This sector will be adversely affected by the strengthening of the rupee. The companies will get less income on the work they get, which will hurt them.
Pharmaceutical export: Export of this sector will also come down due to strengthening rupee. However, India imports a large amount of medicine and its raw materials, in which it will get some relief.
Losses to the textile sector: If the rupee gets stronger then the sector suffers a lot of losses in exports. India currently ranks second in global ranking in textile exports. If the rupee gets stronger then this sector will also suffer a lot of damage.
Studying will be expensive: Studying abroad will become expensive due to strong rupee. Foreign travel will also become expensive.