By Admin 
Dollar vs Rupee: Due to tensions related to Iran, the Indian Rupee is under heavy pressure and it has reached near the level of 94. On Wednesday, the third trading day of the week, while on one hand the stock market opened with strength, on the other hand the rupee continued to fall. In early trade, the rupee fell by 20 paise to reach 93.96 against the US dollar.
Why is the rupee falling?
Investors’ concerns have increased due to continuous withdrawal of foreign capital. Forex traders say that the fall in global crude oil prices, slight weakness in the dollar and strong start of the domestic stock market have limited the fall of the rupee to some extent. However, the rupee remains under pressure due to uncertainties related to the West Asia crisis and selling by foreign investors.
In the Interbank Foreign Exchange Market, the rupee opened at 93.94 per dollar, which shows a decline of 18 paise from the previous closing price. A day earlier i.e. on Tuesday, the rupee had fallen by 23 paise and closed at 93.76. Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, fell 0.15 per cent to 99.28.
strength in stock market
Strength was seen in the domestic stock market. BSE Sensex rose 1,161.61 points or 1.57 percent to 75,230.06, while Nifty rose 372.85 points or 1.63 percent to 23,285.25. Internationally, the price of Brent crude fell by 4.4 percent to $ 99.89 per barrel. According to stock market data, foreign institutional investors sold shares worth Rs 8,009.56 crore on Tuesday.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, there is pressure on the rupee due to withdrawal of foreign capital and strengthening of the US dollar. He told that in this month alone the rupee has fallen by about 4.5 percent and in the near future it may remain in the range of 93.65 to 94.25.
Whenever the rupee depreciates, it has a direct negative impact on the economy. This increases inflationary pressure, because imported goods become expensive. Apart from this, GDP growth rate is also affected. Besides, the possibility of increase in trade deficit also increases due to increase in import bill.
Also read: Dividend of Rs 12 will be given on every share… This company announced, investors were happy