By Admin 
Dollar vs Rupee: The effect of increasing tension in the Middle East is also clearly visible on the Indian currency. The Indian rupee came under pressure on Thursday due to sharp rise in crude oil prices, strong dollar and selling by foreign investors. On the fourth trading day of the week, the Indian Rupee fell to the level of 92.36 against the American currency US Dollar. In the interbank foreign exchange market, the rupee opened at 92.25 and fell further to reach 92.32 per dollar, which is about 31 paise weaker than the previous closing level. A day earlier the rupee had closed at 92.01 per dollar.
main reason for decline
According to forex traders, there are several reasons behind the weakness in the rupee: sharp rise in crude oil prices in the global market, strengthening of the US dollar, heavy selling by foreign institutional investors (FIIs) and fall in domestic stock markets.
Global oil standard Brent Crude rose by about 9.94% to reach $ 101.12 per barrel. Situation of stock market: Pressure was seen in the domestic market also. BSE Sensex fell 992.53 points to 75,871.18 in early trade. NSE Nifty 50 fell by 310.55 points to the level of 23,556.30. According to stock market data, foreign investors sold shares worth Rs 6,267.31 crore on Wednesday.
Why so much pressure on the rupee?
India imports more than 80% of its oil needs. Therefore, when oil prices rise, the country’s import bill increases and oil companies need more dollars. This directly increases pressure on the Indian Rupee. Impact of global events: This surge in oil prices has come at a time when there has been news of an attack on an oil tanker in Iraq’s maritime zone.
Due to this, the possibility of global energy supply being affected has increased and an atmosphere of uncertainty has been created in the market. Experts believe that if tensions continue in the Middle East and oil prices remain high, then the pressure on the rupee may increase further in the coming days.
Also read: Chaos in the oil market! Price crossed 100 dollars, now Iran gave this warning