Currencies

‘Dollar still currency of safety’: Mahindra, Goenka, Chidambaram on falling rupee

Mahindra Group boss Anand Mahindra has chimed in to comment on the rising value of US dollar versus the Indian Rupee. Mahindra said in a recent tweet that despite perceptions of the decline in American influence, dollar continues to be the currency of safety.  

He tweeted, “The ‘mighty’ dollar has gotten mightier. Despite perceptions of the decline of American influence globally, the dollar is still the currency of safety… We seem to be only in the middle of the list of depreciated currencies…”  

Moreover, RPG Group chairperson Harsh Goenka had also posted a meme regarding the same. Congress leader Rahul Gandhi, CPI leader Sitaram Yechury and TMC’s Mahua Moitra also chimed in to give their reactions.

Meanwhile, the rupee appreciated 6 paise to 79.76 against the US dollar in early trade as a positive trend in domestic equities supported the local unit. A strong American currency overseas and forex outflows restricted the rupee’s gain, news agency PTI reported.  

Local unit witnessed an early high of 79.72 and a low of 79.81 against the American currency in initial deals. Head of Treasury at Finrex Treasury Advisors Anil Kumar Bhansali said, “RBI may protect the level of 80 for some more time before it can allow a break of the same. The trade deficit is very high for the rupee to sustain while importers/ debt companies will keep buying dollars to pay off their payables.”

As of 12:23 pm, Sensex gained 590 points to 54,351 whereas Nifty gained 171 points to 16,220. According to Chief Investment Strategist at Geojit Financial Services VK Vijayakumar, “High volatility in the market is likely to continue in the near-term with erratic action from FIIs (FIIs bought on 3 days this month and sold on other days) and sustained buying on dips by retail and DIIs. A significant market trend is the change in leadership from IT and banking to consumption driven FMCG and autos.”

(With agency inputs)

Also read: Rupee appreciates 6 paise to 79.76 against US dollar in early trade

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