Crude prices has helped Rupee to increase

The crude oil pricing has helped Indian rupee to rise. And it has risen 222 paise during the last seven sessions.For the first time, since August 31, the rupee has closed to above 71. That is, the currency closed 79 paise higher to 70.67 level as compared to its previous close of 71.46 level to the US dollar. The rupee opened at 71.10 level in trade.
 
CEO at Epic Research, Mr. Mustafa Nadeem, said that, "Rupee has appreciated in last couple of days and there are multiple factors that are aiding this appreciation. We have been bearing on USDINR from 74.5 levels. Firstly, the increase in crude oil prices in the last few months was one of the most important factors along with others, as India is one of the largest consumers.
This was directly having an impact on CAD which was expected to be widened. Since last two weeks, crude has fallen 30%. Rising bond markets yield was another factor which Indian 10 year T-Bond is now down to levels of 7.74.
All of this adds to a better equation for India as an economy and rupee as a currency".
 
This effect also targeted Iran's oil sector and helped it to aim to complete its oil export to the nations like India and China, who are major importers of crude oil from Iran.
 
FIIs instilled Rs.10523 crore into Indian market in the month of November as compared to the net withdrawal of Rs. 38906 in the month of October. This helped the Indian rupee to rise as it forced the more investors who are seeking to convert their dollars into rupee and this rise lead to demand for the Indian currency. In the month of October, the rupee stood at 73.95 level into the dollar. It was noticed that since than the rupee value has risen 3.97% .

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