By Admin 
Dollar vs Rupee: Despite the trade deal with America and the seal of free trade agreement with EU-UK, the rupee is not showing any strength. On Monday, the first trading day of the week, the rupee fell by one paise to 90.67 per dollar in early trade in the interbank foreign exchange market. Earlier it had opened strong at 90.63, but soon came under pressure. Even on Friday, the last trading day of last week, the rupee traded in a limited range and closed at 90.66 per dollar.
Why is the rupee falling?
According to experts, withdrawal of foreign capital and strengthening of the US dollar are putting pressure on the rupee. The dollar index, which shows the dollar’s position against six major currencies, rose 0.02 percent to 96.93, which affected the currencies of emerging economies. A slight rise in crude oil prices is also negative for the rupee, as India imports a large part of its energy needs. International standard Brent crude stood at $67.78 per barrel.
According to Anil Kumar Bhansali of Finrex Treasury Advisors LLP, cash demand is low due to the US Presidential Holiday, but the market will keep an eye on the trade balance data to be released on February 16. There was weakness in the stock market also. Sensex slipped around 82,555 and Nifty slipped to 25,459. Foreign institutional investors (FIIs) sold shares worth more than Rs 7,395 crore on Friday, putting additional pressure on the rupee.
decline in foreign exchange reserves
Other than this, Reserve Bank of India According to the data released by India, India’s foreign exchange reserves declined by $ 6.711 billion to $ 717.064 billion in the week ending February 6. The decline in reserves is also affecting market sentiments. Overall, strong dollar, FII selling, crude oil prices and declining foreign exchange reserves, all these factors together are keeping the rupee under pressure.
Also read: Gold prices have skyrocketed! Silver slipped by Rs 8000, know how much the rate reduced on February 16