By Admin 
Dollar vs Rupee: Due to increasing tension in the Middle East, there is tremendous pressure on the Indian Rupee. The rise in crude oil prices and selling by foreign investors from the Indian market have weakened the rupee. As soon as the second trading day of the week started, the rupee once again fell by 14 paise against the dollar and reached the level of 92.42.
According to foreign exchange traders, sluggishness in domestic stock markets and strengthening of the American currency have increased the pressure on the rupee. However, investors are waiting for the Federal Reserve’s interest rate decision, due to which the market remains cautious.
Why is the rupee falling?
In the interbank foreign exchange market, the rupee opened at 92.35 per dollar and fell to 92.42 per dollar, showing a decline of 14 paise from the previous closing price. Earlier on Monday, the rupee had closed at 92.28 per dollar.
Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, rose 0.19 percent to 99.65. In the domestic stock markets, BSE Sensex fell 91.62 points (0.12%) to 75,411.23 points in early trade, while Nifty 50 slipped 34.25 points (0.15%) to 23,374.55 points.
What do experts say?
According to Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan, the fall of the rupee may stop to some extent due to slight weakness in the US dollar index and the expectation of reopening of the Strait of Hormuz. Jigar Trivedi, senior research analyst at IndusInd Securities, said that due to high crude oil prices and continuous withdrawal of foreign investors, the rupee remains close to record low.
He said that due to high prices of crude oil, importers have to buy more dollars, due to which India’s trade deficit is increasing and economic pressure is increasing. He also said that the Reserve Bank of India (RBI) has intervened in the foreign exchange market to keep the rupee stable and prevent excessive fluctuations.
Other key indicators
Global oil standard Brent Crude rose 2.68 percent to $ 102.87 per barrel. According to stock market data, Foreign Institutional Investors sold shares worth Rs 9,365.52 crore on Monday.
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