By Admin 
Rupee vs dollar: The Indian rupee weakened against the US dollar on Monday due to increasing concerns about American tariffs and frequent withdrawal of foreign capital from the Indian market. On the first day of the week, the rupee fell 11 paise to 87.29 per dollar in early trade.
According to foreign exchange traders, the weak trend of US dollar and softening in crude oil prices definitely supported the rupee to some extent. But despite this, the rupee opened at 87.21 compared to the US dollar in the interbank foreign exchange market, which was 11 paise weaker than a day earlier.
Major reasons for rupee fall
Uncertainty for American tariffs: The possibility of increasing the import duty (tariff) by the US has affected the perception of global investors, increasing pressure on the currency of emerging markets.
FII selling: Foreign institutional investors (FII) on Friday made a net selling of shares worth ₹ 3,366.40 crore, which affected the domestic currency.
Increase in dollar demand: Dollar demand remained in the Interbank Forex Market, which weakened the rupee.
Some auxiliary factor
Dollar index falls: The dollar index, depicting US dollar strength against major currencies, fell 0.40% to 98.74.
Softening of crude oil prices: According to Brent Crunt International Standard, 0.26% fell to $ 69.49 per barrel, which can provide relief to the oil importing country like India.
Domestic stock market rose: BSE Sensex rose 262.90 points to 80,861.80 in early trade, while NSE Nifty gained 98.50 points to 24,663.85.
Now look at RBI’s decision
The market is now looking at the next monetary policy of the Reserve Bank of India (RBI) to bring stability in the rupee and attract foreign investment. If the RBI intervenes a big or changes the rates, then it will directly affect the direction of the rupee.