Rupee vs Dollar: On Friday, the last trading day of the week, the Indian rupee started with weakness. Due to continuous withdrawal of foreign capital and strengthening of the US dollar, the Indian currency fell by 3 paise to Rs 88.66 per dollar. The rupee opened at Rs 88.61 per dollar in the Interbank Foreign Exchange Market. It fell to Rs 88.66 per dollar in early trade, which shows a decline of three paise from the previous closing price. On Thursday, the rupee had closed at Rs 88.63 per dollar.
dollar strength
The strength of the US dollar put pressure on the rupee. The dollar index, which gauges the US dollar’s position against six major global currencies, rose 0.08 per cent to 99.66. Foreign institutional investors (FIIs) continue selling in the domestic market. According to stock market data, FIIs made a net sale of shares worth Rs 3,263.21 crore on Thursday. This affected the demand for rupee and weakened the currency.
A weak trend was also seen in the domestic stock markets. BSE Sensex fell 610.92 points (0.73%) to 82,700.09 points in early trade. NSE Nifty 50 also fell by 169.50 points (0.66%) to 25,340.20.
Crude oil prices soften
A slight decline was also seen in the prices of crude oil in the international market. Brent crude is trading at $ 63.62 per barrel, falling 0.39 percent. Although softening of oil prices may provide relief to India’s import bill, selling by foreign investors and strengthening of the dollar is not supporting the rupee.
Financial analysts say that continuous FII withdrawals, increase in global bond yields and strengthening of the dollar are putting pressure on the rupee. Rupee may weaken to 88.75–88.80 levels in near future, although stable crude oil prices may provide some relief.
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