(Milcah Anila, Intern Journalist) MUMBAI: The dollar index has lost ground on news that Democratic candidate Joe Biden will take over as the 46th president. The dollar recently hit a two-month low against six major currencies. This is the third day in a row that the domestic currency has rebounded.
At the Interbank Foreign Exchange market, the dollar opened at 73.96 against the dollar. The rupee strengthened below 73.84 in the next session. It is currently trading at 74.03 with a gain of 17 paise. The rupee had closed 18 paise higher at 74.20 over the weekend.
Bank support
Economists believe that with the success of Joe Biden, trade around the world will be able to revive. Also, the US Federal Reserve has already announced its readiness for flexible monetary policy. The Bank of England, on the other hand, has announced an additional $ 190 billion in aid. With this, the support package implemented through the purchase of bonds will reach nearly 900 billion pounds, experts said.
Analysts said that traders are interested in buying currencies based on these factors. Versace said the dollar had weakened in exchange with six major currencies. The Chinese yuan hit a 28-month high, while the New Zealand dollar hit a 19-month high.
However, foreign investment in the domestic stock market has been on the rise recently. Forex sources said the rupee was strengthening. In the first 5 days of this month, FPIs in the cash segment stood at Rs. 8,381 crore has been invested.
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