Gold prices have been below the desired Rs 60,000 level since june 20. The US dollar index fell to a 15-month low, which was cited as the cause of this increase. Due to a drop in US inflation, the US dollar index—a gauge of the value of the dollar relative to a basket of international currencies—saw a significant dip. The value of the US dollar decreased when US inflationary pressures subsided. According to market analysts, this tendency can persist as long as the US dollar is under pressure and inflation is kept in check.
The rupee increased 16 paise to 82.25 versus the US dollar in early trade on wednesday as investors' mood was bolstered by the American currency's weakening in the foreign exchange market and continuous inflows of foreign funds. Sharp increases for the local currency were nonetheless restrained by a spike in crude oil prices, according to FX brokers. The local currency hit a high of 82.25 against the American dollar at the interbank foreign exchange, up 16 paise from its previous closing. The domestic currency began at 82.29.
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