By Admin 
Indian Rupee vs US Dollar: The trend of decline in the Indian rupee continues. Due to the strength of the US dollar, the Indian currency remained in a limited range in early trade on Monday and fell by 5 paise to reach Rs 88.77 per dollar. Foreign exchange traders say that the rupee remains close to its all-time low.
Anil Kumar Bhansali, Head of Treasurer and Executive Director, Finrex Treasury Advisors LLP, says that the market sentiment for this pair (rupee-dollar) is influenced by the strength of the US dollar. Also, the mild risk-off environment at the global level and domestic factors such as the stable policy stance of the RBI and the outlook for controlled inflation are also contributing to this.
Bhansali further said that there has been a slight decline in the dollar index, which is due to the easing of trade tensions between America and China (US-China trade war). He also said that volatility in the global market and geopolitical developments will remain the major factors determining the direction of the rupee in the near future.
Why is the rupee falling?
In the Interbank Foreign Exchange Market, the rupee opened at Rs 88.75 per dollar and fell to Rs 88.77 within a short time. This shows a decline of 5 paise from the previous session’s closing price of Rs 88.72 per dollar. Earlier on Friday, the rupee had closed at 88.72. Meanwhile, the dollar index, which gauges the US dollar’s position against six major global currencies, declined 0.04 percent to 98.93.
Weakness was also seen in the domestic stock market. BSE Sensex opened 451.82 points lower at 82,049 points in early trade, while NSE Nifty 50 fell 109.55 points to 25,175.80 points.
Crude oil and FII stance
In the international market, Brent crude oil is trading at $ 63.67 per barrel with an increase of 1.50 percent. According to stock market data, foreign institutional investors (FIIs) were net buyers on Friday and bought shares worth Rs 459.20 crore. Overall, dollar strength, fluctuating crude oil prices and global economic instability are keeping the rupee under pressure.
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