Rupee vs Dollar: There is continuous weakness in the Indian Rupee. After a slight recovery during mid-day trade on Friday, it again slipped against the dollar. On the very first day of the week i.e. Friday, the rupee fell by 16 paise to 90.11 in early trade. Rising prices of crude oil and continuous withdrawal of foreign capital are considered to be the main reasons for this.
Forex traders say that the strong demand for US dollars from companies, importers and foreign investors has put huge pressure on the Indian currency. In the interbank foreign exchange market, the rupee opened at 90.07 and later fell to 90.11 per dollar, showing a decline of 16 paise from the previous closing price. The rupee had closed at 89.95 on Thursday. Meanwhile, the dollar index, which reflects the dollar’s position against six major currencies, stood at 98.88, down 0.11 percent.
Why the fall in rupee?
According to market experts, one of the reasons for the recent huge fall in the rupee is the lack of progress in the trade deal between America and India. Apart from this, continuous selling by foreign investors in the domestic market has also weakened the rupee.
Ponmudi R, CEO of Enrich Money. Says that the decision of the US Fed Reserve is going to be very important for India, because it will determine the direction of the rupee and the attitude of foreign institutional investors (FIIs). However, pressure on the rupee may remain in the coming days. Rupee is expected to get some support from possible repo rate cut by RBI, strong GDP growth rate and better liquidity in the domestic market.
stock market slipped
Pressure was also seen on the stock market front. BSE Sensex fell 215.73 points to 85,741.24 in early trade, while NSE Nifty-50 also fell 64.85 points to 26,121.60. International standard Brent crude was trading at $ 63.85 per barrel with a gain of 0.17 percent. According to stock market data, foreign institutional investors (FIIs) sold a net worth of Rs 438.90 crore on Friday.
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