By Admin 
Dollar vs Rupee: The Indian rupee continues to fall amid tensions in the Middle East. There is pressure on the rupee due to the strength of the US dollar and rise in crude oil prices. On the third trading day of the week, i.e. Wednesday, the rupee once again fell by three paise to reach the level of 92.43 against the dollar.
Due to the ongoing war in West Asia, the domestic currency is under pressure due to the withdrawal of foreign investors and the strong trend of the US dollar. According to foreign exchange traders, slight softening of global crude oil prices and positive opening in domestic stock markets have currently kept the rupee from falling further.
Why is the rupee falling?
In the interbank foreign exchange market, the rupee opened at 92.42 against the dollar and later fell to 92.43 per dollar, showing a decline of three paise from the previous closing price. During trading on Thursday last week, the rupee had reached its lowest level of 92.47 against the dollar.
However, it finally closed at an all-time low of 92.40 per dollar. Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, rose 0.03 percent to 99.60.
In the domestic stock markets, Sensex rose by 373.53 points (0.49 percent) to 76,444.37 points in early trade, while Nifty rose by 114.40 points (0.49 percent) to 23,695.55 points.
The price of international standard Brent crude fell by 1.32 percent to $ 102.0 per barrel. According to stock market data, foreign institutional investors (FIIs) were sellers on Tuesday and sold shares worth Rs 4,741.22 crore.
What do experts say?
According to Anuj Chaudhary, research analyst at Mirae Asset Sharekhan, the main reasons for the decline in the domestic currency are the rise in crude oil prices and continuous capital withdrawal by foreign institutional investors (FIIs). However, improvement in domestic markets and slight weakness in the US dollar have limited the sharp fall of the rupee.
He said that expectations of reopening of the Strait of Hormuz and possible intervention of the Reserve Bank of India may support the rupee at lower levels. Additionally, investors will also keep an eye on the monetary policies of the Federal Open Market Committee (FOMC), European Central Bank (ECB), Bank of Japan and Bank of England this week. According to him, the spot price of rupee against the US dollar may remain in the range of Rs 92.10 to Rs 92.75.
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