Mukesh Ambani’s Jio IPO is planting its flag everywhere. Where the company created 3 records before being listed in the IPO market. On the other hand, it created panic in the currency market. Foreign investors have invested heavily in the Jio IPO. Due to which Jio IPO has brought a large amount of foreign currency to India. The effect of which has been seen in rupees. According to the data of the currency market, a rise of 48 paise has been seen in the rupee against the dollar. Due to which rupee is seen at its peak in 6 weeks. However, other factors that hurt the rupee have not abated. In such a situation the impact of Jio IPO will be less. A decline in the rupee may be seen. Let us also tell you what kind of statistics are being seen in the currency market.

Rupee reached its peak in 6 weeks

On Wednesday, the rupee appreciated by 48 paise to close at 94.43 (provisional) against the US dollar. Reliance Industries’ Jio platform IPO and RBI’s intervention to curb demand for dollars helped the rupee in foreign investment. However, foreign currency market analysts say that weak domestic market and high crude oil prices are under pressure on the rupee.

The rupee opened at 94.78 against the dollar in the interbank foreign exchange market. During the day’s trading, it touched a high of 94.41 and a low of 94.82. Finally, it closed at 94.43 (tentative) with an increase of 48 paise over its previous closing price. Earlier, the Indian currency had closed at the same level on September 4 as well. On Monday, the rupee fell by 2 paise to close at 94.91 against the US dollar. Foreign exchange markets remained closed on Tuesday due to Dussehra.

Main reasons for rise in rupee

Jio Platforms Rs. 30,213 crore public offer opened for subscription on Wednesday. The IPO will close on October 23. per share Rs. 1,065 to Rs. The issue, with a price band of 1,119, was fully subscribed within 100 minutes of opening, making it the fastest subscribed IPO ever.
Meanwhile, the dollar index – which measures the dollar’s strength against a basket of six currencies – was trading up 0.07 percent at 101.59.
Global oil benchmark Brent crude futures were trading up 1.99 percent at $110.96 a barrel.
In the domestic equity market, the Sensex closed down 143.21 points at 73,709.69 while the Nifty closed down 77.60 points at 22,811.35.
According to exchange data, on Monday, foreign institutional investors (FIIs) on a net basis inflowed Rs. 1,148.64 crore worth of shares were sold.

The increase is due to the Jio IPO

Anuj Chowdhury, research analyst at Mira Asset Sharekhan, said the rupee touched a six-week high on foreign investment driven by the IPO and some weakening of the US dollar. However, a weak domestic market and higher crude oil prices limited the rupee’s rally. He further said that the rupee is expected to trade with a positive bias due to broader weakness in the dollar and softening in US Treasury yields. “The USD-INR spot price is likely to remain in the range of Rs 94.20 to Rs 94.80.

Analysts say a strengthening rupee could reduce imported inflation and reduce currency-related costs for companies that import crude oil, electronics and other raw materials. Sectors such as aviation and oil marketing may also benefit, although the actual impact will depend on their hedging position and prices.

Rupee supported by RBI measures

Gaurav Garg, head of research at brokerage platform Lemon, said foreign investors participating in large IPOs typically sell dollars to get rupees, which increases the supply of dollars in the local foreign exchange market. The RBI has also supported the rupee through measures to curb demand for dollars in the spot market from oil companies and curb excessive exchange rate volatility. He added that there are major challenges to recovery, as Brent crude prices have crossed $110 a barrel amid renewed tensions in the Middle East and fears of supply disruptions. Garg said that going forward, how long the rupee’s recovery will last will depend on investment coming from IPOs, RBI intervention, crude oil prices, foreign portfolio investment and movement of the US dollar.