By Admin 
Dollar vs Rupee: There is a continuous trend of weakness in the Indian Rupee. Recently, due to the intervention of the Reserve Bank of India (RBI), there was some recovery in the rupee, but due to the continuous withdrawal of foreign capital and the slow start of the domestic stock markets, the pressure has increased once again. In early trade on Monday, the rupee fell by 5 paise to 89.95 against the US dollar.
Why is the rupee falling?
In the interbank foreign exchange market, the local currency opened at 89.95 per dollar, which shows a decline compared to the previous closing price. According to forex traders, foreign portfolio investors (FPIs) have been continuously selling in the Indian stock market for the last few months, which is directly impacting the rupee. On Friday, the rupee had closed at 89.90 against the dollar.
Meanwhile, the dollar index, which reflects the dollar’s strength against six major global currencies, stood at 98.00 with a slight decline of 0.02 percent. There was also a rise in the prices of Brent crude oil in the international market and it increased by 0.92 percent to reach $ 61.20 per barrel, which created additional pressure on the rupee due to the fear of increasing import bill.
What do experts say?
Talking about the domestic stock market, in early trading, BSE Sensex was seen trading with a gain of 22.24 points at 85,063.69 points while Nifty was seen trading with a rise of 18.10 points at 26,060.40 points. However, this rise in the market did not prove to be enough to strengthen the rupee. According to stock market data, on Friday, foreign institutional investors (FIIs) were net sellers and sold shares worth Rs 317.56 crore.
Responding to this, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said that if there is a permanent return of foreign investors to the Indian stock market in the coming time, then it can support the rupee. He also said that currently the rupee is among the weakest performing currencies among emerging market and Asian currencies, and the direction of foreign investment inflows will play an important role in determining the further movement of the rupee.
Also read: Stormy rise in silver prices! Crosses Rs 2.50 lakh for the first time, know the reason for this.