By Admin 
Rupee vs Dollar: On Friday, the last trading day of the week, the Indian Rupee did not see the same strength that was recorded a day earlier. In early trade, the rupee fell by eight paise to reach 90.69 against the US dollar. The rupee remained under pressure due to the strong trend of the US dollar and negative environment in the domestic stock markets. In the interbank foreign exchange market, the rupee opened at 90.69, which shows a decline compared to the previous closing price of 90.61.
Why did the rupee break?
According to foreign exchange traders, due to the strength of the dollar, the possibility of rise in the currencies of emerging markets, especially the rupee, has been limited. Initially the market had welcomed the India-US trade agreement positively, but new concerns emerged after the ‘fact sheet’ released by the White House. The terms of the agreement are mentioned in this document, which include India eliminating or reducing tariffs on many American industrial and agricultural products. This has increased caution among investors regarding the impact on trade balance and domestic industries.
Meanwhile, Commerce Secretary Rajesh Aggarwal clarified that India has fully protected its sensitive sectors in the trade talks and important clauses have been preserved under the interim agreement. He also said that the teams of both the countries are working on converting the joint statement into a legal agreement, which is likely to be finalized by the end of March.
There was a rise a day ago
On Thursday, the rupee had strengthened by 17 paise and closed at 90.61, but on Friday the dollar remained strong with the dollar index rising by 0.02 per cent to reach 96.94. Domestic stock markets also showed a declining trend. Sensex fell 683.72 points to 82,991.20 in early trade and Nifty fell 207.15 points to 25,600.05.
In the international market, the price of Brent crude fell by 0.16 percent to $ 67.41 per barrel, due to which there was a slight softening in the prices of crude oil. According to stock market data, foreign institutional investors (FIIs) remained buyers on Thursday and bought shares worth Rs 108.42 crore. Despite this, global cues and the strength of the dollar kept pressure on the rupee.
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