By Admin 
Rupee vs Dollar: There has been a continuous weakness in the Indian Rupee in recent times and its direct effect seems to be related to the inflow of foreign capital and the trend of domestic stock markets. In early trade on Tuesday, the rupee fell by five paise to 89.73 against the US dollar, whereas earlier it had opened at 89.67.
Why is the rupee falling?
Experts of the foreign exchange market say that on one hand, there is pressure on the market due to continuous selling by foreign institutional investors, on the other hand, sluggishness in the domestic stock markets is also hindering the strengthening of the rupee. However, weakness in the dollar index and fall in international crude oil prices have definitely supported the rupee at lower levels to some extent.
Even on Monday, the rupee could not maintain its initial gains and closed with a slight fall at 89.68 per dollar, where the bullish support in the stock market weakened due to the rise in crude oil prices. During this period, the dollar index, which shows the position of the dollar against six major currencies, fell by 0.20 percent to 98.08, but despite this, the weakness in the domestic markets continued to dominate the rupee.
What do experts say
Talking about the stock market, Sensex fell 116.57 points to 85,450.91 in early trade and Nifty slipped 27.15 points to 26,145.25. At the same time, Brent crude was also seen trading at $ 61.99 per barrel with a slight decline of 0.12 percent. Market data also revealed that foreign institutional investors remained sellers on Monday by selling shares worth a net Rs 457.34 crore, which further increased the pressure on the rupee.
Experts believe that in the coming days, the rupee may get some relief due to weak dollar and possible strength in domestic markets, but due to delay in India-US trade agreement and global uncertainties, there may remain pressure on the upper levels. According to analysts, at present the spot price of dollar-rupee may remain in the range of 89.20 to 89.80 and investors will keep their eyes on other important global economic data including US GDP.