By Admin 
Dollar vs Rupee: There was a stir in the market after the US made amendments in the fact sheet on the trade agreement with India. The Indian rupee weakened in early trade on Wednesday, the third trading day of the week, amid news of changes in the document released by the White House a day earlier. Geopolitical tensions and increasing demand for the dollar from importers affected investor sentiments and the rupee fell six paise to 90.62 against the US dollar.
Rupee breaks against dollar
In the Interbank Foreign Exchange Market, the rupee opened at 90.56 per dollar, but later slipped to 90.62, showing a decline of six paise from the previous closing price. However, at one time it had strengthened up to 90.46 in early trade. On Tuesday, the rupee closed at 90.56 per dollar with an increase of 10 paise. Meanwhile, the dollar index, which reflects the US dollar’s position against six major currencies, was down 0.14 percent at 96.66.
A positive trend was seen in the domestic stock markets. BSE Sensex rose 141.21 points to 84,415.13 in early trade, while Nifty was seen trading with a gain of 51.95 points at 25,987.10. In the international market, the price of Brent crude increased by 0.78 percent to $ 69.34 per barrel.
There has also been an improvement in the attitude of foreign investors. So far this month, foreign investors have invested about two billion dollars in the Indian market. According to stock market data, foreign institutional investors (FIIs) were net buyers of shares worth Rs 69.45 crore on Tuesday.
What are experts saying?
Experts believe that further movement of rupee will depend on many factors. According to Anuj Choudhary, research analyst at Mirae Asset Sharekhan, the rupee can trade with a positive trend due to the strength of domestic markets and expectations of a trade agreement. A weak dollar and fresh foreign investment inflows can also support it. However, geopolitical tensions and dollar demand from importers may limit the upside.
He predicted that the spot price of dollar-rupee could remain in the range of 90.30 to 90.80. HDFC Securities research analyst Dilip Parmar said that the rupee is getting support due to strong investor sentiment and return of foreign investment.
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