20 Jan 2026, Tue

Indian rupee lost its strength due to foreign capital withdrawal, lost its strength in front of US dollar

Rupee vs Dollar: Weakness is being seen in the Indian Rupee this year also. In early trade on Tuesday, January 20, 2026, the Indian rupee fell by eight paise to 90.98 per dollar. Strong demand for the dollar from metal importers and continued foreign capital outflows put pressure on investor sentiment. According to forex traders, due to geopolitical uncertainties, risk aversion has increased globally, which is impacting the currencies of emerging markets.

weakness in rupee

Apart from this, sluggishness in the domestic stock market and continuous selling by FIIs also increased the weakness of the rupee. In the interbank foreign exchange market, the rupee opened at 90.91 per dollar, but later fell to 90.98, which is eight paise less than the previous closing price.

On Monday, the rupee fell by 12 paise and closed at 90.90 against the US dollar. During this period, the dollar index, which shows the strength of the dollar against six major currencies, declined by 0.44 percent to 98.95. There was also pressure in the stock market, where Sensex fell 311.33 points to 82,934.85 in early trade and Nifty fell 99.5 points to 25,486.

foreign investors fleeing

In the international market, the price of Brent crude stood at $ 64.01 per barrel with an increase of 0.11 percent. At the same time, according to stock market data, foreign institutional investors made a net sale of shares worth Rs 3,262.82 crore on Monday. According to Anuj Chaudhary, research analyst at Mirae Asset Sharekhan, the rupee declined for the fourth consecutive trading session due to continuous withdrawal of foreign institutional investors (FIIs) and weakness in the domestic stock markets.

He said that the increasing trend of risk aversion at the global level and the increasing geopolitical tension between America and European countries over the control of Greenland have also increased the pressure on the rupee. According to Chaudhary, under these circumstances, the rupee may continue to have a weak trend and the spot price of the rupee against the US dollar is likely to remain in the range of 90.60 to 91.30.

Also read: Silver reaches new record, gold also shines brightly on MCX, know the latest rate of your city on January 20

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