By Admin 
Rupee vs Dollar: Once again tremendous pressure has been seen on the Indian rupee. After showing strength against the US dollar for two days, the rupee fell by three paise to 89.90 per dollar in early trade on Thursday. The rise in global crude oil prices and capital withdrawal by foreign investors have weakened the domestic currency, creating an atmosphere of caution in the market.
Why is the rupee falling?
According to foreign exchange traders, the strength of the dollar and weakness in the domestic stock markets put additional pressure on the rupee. In the interbank foreign exchange market, the rupee opened at 89.96 and despite a slight recovery later, it was seen trading at 89.90 per dollar, which shows a decline of three paise from the previous closing price.
It is noteworthy that a day before this, on Wednesday, the rupee had got some relief. Due to possible intervention of the Reserve Bank of India (RBI) and softening of global crude oil prices, the rupee strengthened by 31 paise and closed at 89.87 against the dollar. Meanwhile, the dollar index, which reflects the position of the dollar against six major global currencies, remained at 98.69 with a slight increase of 0.01 percent.
What do experts say?
Money market experts say that the decline has been curbed to some extent due to the activeness of RBI. According to Anil Kumar Bhansali, Executive Director, Finrex Treasury Advisors, the Reserve Bank by selling the dollar at the level of 90.23 indicated that a unilateral move in the currency market would not be accepted. However, he also said that it is difficult to make clear predictions about the future direction of the rupee, but the rupee may remain in the range of 89.50 to 90.50 in January.
Here, weakness was also seen in the domestic stock markets. In early trade, Sensex fell 255.86 points to 84,705.28 and Nifty fell 65.90 points to 26,074.85. In the international market, the price of Brent crude stood at $ 60.19 per barrel with an increase of 0.30 percent. At the same time, according to stock market data, foreign institutional investors (FIIs) sold shares worth a net Rs 1,527.71 crore on Wednesday, which increased the pressure on both the rupee and the stock market.
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