By Admin 
Dollar vs Rupee: The Indian Rupee continues to weaken amid global uncertainties and continuous selling by foreign investors. On Friday, the rupee declined for the third consecutive trading session and fell by 10 paise to 90.44 per dollar against the US dollar. The strong trend of the dollar and continuous withdrawal of foreign capital kept pressure on the domestic currency.
However, softening of crude oil prices and positive trend of domestic stock market definitely supported the rupee to some extent at lower levels.
business situation
In the interbank foreign exchange market, the rupee opened at 90.37 per dollar, but could not maintain the initial gain and slipped to 90.44. This shows a decline of 10 paise compared to the previous closing price. Earlier on Wednesday, the rupee had closed at 90.34 per dollar.
Foreign exchange markets were closed on Thursday due to Brihanmumbai Municipal Corporation (BMC) elections.
Why is the rupee falling?
According to foreign exchange market experts, there are many reasons behind the pressure on the rupee-
Heavy selling by foreign institutional investors (FII)
global strengthening of dollar
Investors avoid risk due to geopolitical tensions
The dollar index, which shows the dollar’s strength against six major currencies, fell 0.02 percent to 99.10, but its level still remains high.
stock market and crude oil
Mixed trend was seen in the domestic stock market, Sensex closed at 83,592.75 with a gain of 210.04 points. Nifty slipped 34.65 points to 25,700.25. In the international market, Brent crude fell by 0.34 percent at $ 63.54 per barrel, which gave some relief to the rupee. According to stock market data, on Wednesday, FIIs sold shares worth a net Rs 4,781.24 crore.
Expert opinion
According to Anuj Choudhary, research analyst at Mirae Asset Sharekhan, “The rupee gained some strength in early trade due to possible intervention by the central bank, but due to strong dollar, withdrawal of foreign investors and fluctuations in domestic markets, this rise did not last and the rupee finally closed with a decline.”
He further said that due to risk aversion in global markets and increasing geopolitical tensions, pressure on the rupee may remain. According to Chaudhary, the spot price of rupee against the dollar is likely to remain in the range of 89.95 to 90.50 in the coming sessions.
Overall, due to global instability, withdrawal of foreign capital and strengthening of the dollar, the path of rupee does not seem easy at the moment, however, softening of crude oil and possible intervention of RBI may curb the fall to some extent.