Rupee vs Dollar: Continuous fluctuations are being seen in the Indian rupee this year. Many times it has even touched record lows against the US dollar. In early trade on Thursday, the rupee fell by 7 paise and reached the level of 88.69 per dollar.
Why is the rupee falling?
Analysts say that due to the weakness in the domestic markets and the strength of the US dollar, investor sentiment has been affected. However, there is some positivity in the market due to the ongoing talks regarding US-India trade deal, which has given some support to the rupee at lower levels.
According to forex traders, the rupee opened at 88.66 against the dollar in the Interbank Foreign Exchange market, but soon weakened by 7 paise to reach 88.69 per dollar.
Weakness in stock market also
An atmosphere of weakness was also seen in the domestic stock markets. BSE Sensex fell 205.08 points to 84,261.43 in early trade. NSE Nifty-50 was also trading at 25,814.65, slipping 61.15 points. Brent crude prices also fell 0.13% to $ 62.63 per barrel.
Foreign institutional investors (FIIs) are continuously selling. On Wednesday, he sold shares worth Rs 1,750.03 crore, which created additional pressure on the rupee.
The dollar index, which shows the position of the US dollar against six major currencies, rose 0.02% to 99.51. This strength of the dollar is putting pressure not only on the rupee but also on many currencies of Asia.
What can be expected next?
Market experts say that the direction of the rupee is now largely
- US Treasury Yields,
- crude oil price movement,
- And will depend on the investment inclination of FIIs.
If foreign capital outflows continue and the dollar index remains strong, the rupee may come under further pressure. However, positive news related to trade deals and exports can support its stability.
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