Dollar vs Rupee: The movement of rupee against dollar has remained flat today. Today the rupee weakened by 1 paise and closed at Rs 86.58 per dollar. On Tuesday, the rupee had closed at the level of 86.56. Anuj Chaudhary, Research Analyst at Mirae Asset Sharekhan, says that the Indian Rupee opened strong today due to weakness in the US dollar and fall in crude oil prices. However, the domestic currency lost its early gains due to decline in domestic markets. The recovery in the US dollar index also put pressure on the rupee. The US dollar strengthened after US President Donald Trump threatened to impose 25 percent tariffs on Canada and Mexico by February 1.
US President Trump has said in his statement that if the TikTok deal is not approved by China, tariffs are possible. Strict action is possible if TikTok deal is not approved. Tariffs on Canada and Mexico are possible starting February 1. There will be no ban on TikTok for the next 75 days. America has decided to withdraw from WHO. Tariffs will solve the European Union’s crisis. Will sell OIL & GAS to European Union. Can stop purchase of OIL & GAS from Venezuela.
A 25 percent tariff on Canada and Mexico is under consideration.
Anuj Chaudhary further said that the rupee is expected to remain weak due to the underlying strength in the US dollar and weak domestic markets. Demand from importers for dollars may put further pressure on the rupee. However, any further fall in crude oil prices could support the rupee at lower levels. There may be some fluctuations in the market amid the announcements of the US government. USDINR spot price is expected to trade between Rs 86.35 to Rs 86.80.
Market outlook: Market closed due to heavy fall, know how it may move on January 22
The equity market has closed heavily today amid sharp fluctuations. Nifty closed at 7 month low. Nifty slipped below 23,000 intra-day for the first time since June 7, 2024. Today Sensex-Nifty closed with a fall of about 1.5 percent. Selling was seen in midcap and smallcap stocks. There was selling in all sector indices of BSE. Realty, energy and PSE shares declined. There was selling in auto, banking and IT stocks also.
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