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.

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Rupee vs Dollar: This year, the Indian rupee has seen a lot of fluctuations and due to various reasons like tariff concerns, global uncertainties, withdrawal of foreign capital and strengthening of the dollar, it had seen a big decline, even the rupee had crossed the level of 91, but after this, due to the active intervention of the Reserve Bank of India (RBI) and steps to increase liquidity in the market, the rupee has started showing strength again.

Rupee strengthened

The rupee strengthened by 12 paise to 89.51 against the US dollar in early trade on Wednesday. According to forex traders, the rupee received strong support from the RBI’s announcement of providing adequate liquidity of about Rs 3 lakh crore to the market, which boosted investor confidence. In the interbank foreign exchange market, the rupee opened at 89.56 and within a short time reached 89.51, which shows a strengthening of 12 paise from the previous closing level.

During trading, the rupee even went up to 89.65 at one point, whereas on Tuesday it had closed at 89.63. Meanwhile, the dollar index, which shows the strength of the dollar against six major currencies, fell by 0.07 percent to 97.87, which provided some relief to the emerging market currencies.

stock market boom

Positive trends were also seen in the domestic stock market, where Sensex rose by 63.82 points to 85,588.66 in early trade and Nifty rose by 32.80 points to reach 26,209.95.

In the international market, Brent crude was also seen trading at $ 62.39 per barrel with a slight gain of 0.02 percent with almost stable trend. However, despite this, foreign institutional investors (FIIs) were net sellers on Tuesday and sold shares worth Rs 1,794.80 crore, indicating that despite the strengthening of the rupee and the stock market, foreign investors are currently adopting a cautious approach.

Rupee vs Dollar: After slipping beyond the record level of 91, the Indian Rupee now seems to be recovering due to the intervention of the Reserve Bank of India (RBI), foreign capital inflows and strength in the domestic stock markets. The rupee rose by 22 paise to 89.45 against the US dollar in early trade on Monday, indicating in the market that the pressure on the currency has reduced to some extent after the recent fall.

Why is the rupee strengthening?

According to forex traders, investment in dollars by corporate companies, net buying in the stock market by foreign institutional investors and stability of crude oil prices around $ 60 per barrel have become positive factors for the rupee.

In the interbank foreign exchange market, the rupee opened at 89.53 and gradually strengthened to reach the level of 89.45, whereas in the previous trading session it had closed at 89.67 with a gain of 53 paise. The dollar index, which reflects the position of the dollar at the global level, remained almost stable at 98.63, which has also provided some relief to the currencies of emerging economies.

A positive atmosphere was also seen in the domestic stock markets, where the Sensex rose by more than 210 points to reach the level of 85,139 and the Nifty was also seen trading above 26,121 with a rise of 154 points.

stock market boom

According to market data, foreign institutional investors made net purchases of about Rs 1,830 crore in the last session, which supported both the rupee and the stock market. Overall, due to the active role of RBI, support of foreign investment and stability in global indicators, the Indian Rupee currently appears to be in a strong trend, although its further direction will depend on the global economic conditions and capital flows.

Rupee vs Dollar: The trend of weakness in the Indian rupee continues and on Tuesday it once again reached a new record low against the US dollar. Due to uncertainty over India-US trade agreement and continuous selling by foreign investors, the rupee fell by 9 paise to 90.87 per dollar in early trade.

Foreign exchange market experts say that investors are currently waiting for some concrete signal related to the India-US trade deal, due to which there is pressure on the domestic currency. However, weakness in the dollar and fall in crude oil prices in the international market kept the rupee from falling deeper to some extent.

heavy pressure on rupee

In the interbank foreign exchange market, the rupee opened at its all-time low of 90.87, which shows a decline of nine paise compared to the previous closing price. During trading it kept fluctuating in the range of 90.77 to 90.87 per dollar. A day before this, on Monday also, the rupee had closed at the lowest ever level of 90.78 against the US dollar, which clearly shows that the pressure on the domestic currency is continuously increasing.

Meanwhile, the dollar index, which gauges the dollar’s strength against six major global currencies, fell by 0.03 per cent at 98.27, providing some limited support to the rupee. Weakness was also seen in the domestic stock market. In early trade, BSE Sensex fell 363.92 points to 84,849.44, while NSE Nifty slipped 106.65 points to 25,920.65. This weakness in the stock market also had a negative impact on the movement of the rupee.

foreign investors fleeing

The fall in international crude oil prices was definitely a sign of relief. Global standard Brent crude fell 0.61 percent to $ 60.19 per barrel, which is expected to reduce the pressure on the import bill. Despite this, continuous selling by foreign institutional investors remains a big challenge for the rupee. According to stock market data, on Monday, FIIs sold shares worth a net Rs 1,468.32 crore. Experts believe that until there is clarity on the India-US trade agreement and the outflow of foreign capital does not stop, the rupee may remain under pressure.

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Dollar vs Rupee: The Indian Rupee has fallen to a historic low and has crossed the 90 level against the US Dollar. The rupee fell 10 paise to 90.15 per dollar in early trade on Tuesday. This decline is being seen just before the US Fed’s decision. Apart from this, lack of significant progress so far in the India-US trade deal is also being considered a major reason for the weakness of the rupee.

and broken rupee

US President Donald Trump has threatened to impose new tariffs on Indian agricultural products, especially rice. Along with this, a warning has also been given to impose tariff on Canadian fertilizers. Trump said in the White House that cheap imports are creating problems for American farmers. According to foreign exchange traders, investors have become cautious due to the increasing demand for US dollars.

In the interbank foreign exchange market, the rupee opened at 90.15, which shows a decline from Monday’s 90.05. Meanwhile, the dollar index fell 0.04% to 99.04. Weakness was also seen in the domestic stock market, where the Sensex opened 381.91 points down at 84,720.78 and later fell by 700 points. Banking, metal and IT stocks have seen the biggest decline.

What do experts say?

On Friday, the rupee ended trading at 89.95 against the US dollar after the RBI cut the repo rate for the first time in 6 months. According to Anuj Chaudhary, Research Analyst, Mirae Asset Sharekhan, the rupee is likely to remain under pressure due to continuous withdrawal of foreign institutional investors (FIIs) and weak domestic markets. He further said that weakness in the dollar may give some support to the rupee at lower levels amid expectations of interest rate cut by the Federal Reserve in December. Possible intervention by RBI may also provide support to the rupee.

Chaudhary says that the dollar-rupee spot rate can trade in the range of Rs 90.05 to Rs 90.75. At the same time, Reserve Bank Governor Sanjay Malhotra had said on Friday that the central bank does not set any fixed range for the rupee in the foreign exchange market, but gives the domestic currency the freedom to find its actual level as per the market conditions.

Nifty-50 also slipped 139.55 points to reach 25,821.00. Brent crude fell 0.19% to $ 62.37 per barrel. According to the data, foreign institutional investors (FIIs) remained out of the market on Monday with selling of Rs 655.59 crore.

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Rupee vs Dollar: There is continuous weakness in the Indian Rupee. After a slight recovery during mid-day trade on Friday, it again slipped against the dollar. On the very first day of the week i.e. Friday, the rupee fell by 16 paise to 90.11 in early trade. Rising prices of crude oil and continuous withdrawal of foreign capital are considered to be the main reasons for this.

Forex traders say that the strong demand for US dollars from companies, importers and foreign investors has put huge pressure on the Indian currency. In the interbank foreign exchange market, the rupee opened at 90.07 and later fell to 90.11 per dollar, showing a decline of 16 paise from the previous closing price. The rupee had closed at 89.95 on Thursday. Meanwhile, the dollar index, which reflects the dollar’s position against six major currencies, stood at 98.88, down 0.11 percent.

Why the fall in rupee?

According to market experts, one of the reasons for the recent huge fall in the rupee is the lack of progress in the trade deal between America and India. Apart from this, continuous selling by foreign investors in the domestic market has also weakened the rupee.

Ponmudi R, CEO of Enrich Money. Says that the decision of the US Fed Reserve is going to be very important for India, because it will determine the direction of the rupee and the attitude of foreign institutional investors (FIIs). However, pressure on the rupee may remain in the coming days. Rupee is expected to get some support from possible repo rate cut by RBI, strong GDP growth rate and better liquidity in the domestic market.

stock market slipped

Pressure was also seen on the stock market front. BSE Sensex fell 215.73 points to 85,741.24 in early trade, while NSE Nifty-50 also fell 64.85 points to 26,121.60. International standard Brent crude was trading at $ 63.85 per barrel with a gain of 0.17 percent. According to stock market data, foreign institutional investors (FIIs) sold a net worth of Rs 438.90 crore on Friday.

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Rupee vs Dollar: The weakness in the Indian rupee continues. The last trading day of last week, Friday, saw the biggest single-day fall in three years when the rupee fell by 98 paise. However, after this the rupee got some support due to softening of crude oil prices and intervention of the Reserve Bank of India.

But this strength could not last long. In early trade on Thursday, the rupee again fell by 2 paise and reached the level of 89.24 against the US dollar.

Why the fall in rupee?

The rupee came under pressure due to the unstable global trade environment and increasing demand for dollars by importers. Forex traders say that the new inflow of foreign capital into the domestic stock markets and softening of crude oil prices in the international market are giving some support to the rupee, but the pressure still remains.

In the interbank foreign exchange market, the rupee opened at 89.19 per dollar, after which it slipped to 89.24 in early trade. This shows a weakness of 2 paise compared to Wednesday’s closing price of 89.22.

stock market boom

On the other hand, the dollar index, which shows the strength of the dollar against six major currencies, fell by 0.09 percent to 99.43. A rise was also seen in the domestic stock markets. BSE Sensex rose by 305.82 points (0.36%) to reach 85,915.33 in early trade. NSE Nifty 50 was also seen trading at 26,274.45 with a gain of 69.15 points (0.26%).

International standard Brent crude fell 0.43 percent to $ 62.86 per barrel. According to stock market data, foreign institutional investors (FIIs) were also in a buying position on Wednesday. He bought shares worth a total of Rs 4,778.03 crore.

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Indian Currency: On the last trading day of last week i.e. Friday, a huge fall of 98 paise was recorded in the Indian rupee, which was the biggest single day fall in the last three years. After this, the rupee reached its all-time low of 89.66 against the US dollar. However, after this the rupee recovered rapidly.

The fall in crude oil prices amid continuous selling by foreign investors and direct intervention by the RBI played an important role in saving the rupee from further weakening. On Monday, the first trading day of the week, the rupee strengthened by 50 paise and closed at 89.16. On Tuesday also the rupee rose by 11 paise to reach the level of 89.05.

strong movement of rupee

According to market experts, there is pressure on the rupee due to the strength of the dollar. HDFC Securities Research Analyst Dilip Parmar says that due to possible intervention from the central bank and rebalancing in MSCI index, the rupee gained the most in Asian currencies. However, withdrawal of foreign funds, increasing trade deficit and strengthening of the dollar index have weakened the sentiment of the rupee.

Last Friday, there was huge demand for dollars due to selling in foreign markets and trade uncertainties, due to which there was a sharp fall in the rupee. Earlier, the biggest fall in one day was 99 paise on 24 February 2022.

How will the rupee perform going forward?

According to Dr. Aastha Ahuja, Associate Professor, Department of Economics, Aryabhatta College, Delhi University, the confidence of foreign investors is currently weak in the Indian market, and unless a trade deal is made, uncertainty may persist. The increasing trade deficit is also putting pressure on the rupee.

He says that the weakness of the rupee is not only affecting the market but also the consumers and the students studying abroad, because the cost of sending money to them has increased. However, in case of a trade deal, the chances of the rupee falling to the level of 86–87 will increase.

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Dollar vs Rupee: The Indian rupee fell 48 paise to close at 88.70 (provisional) against the US dollar on Thursday. This weakness of the rupee was mainly seen due to the strong US dollar, weak domestic stock markets and the aggressive stance of the US Federal Reserve. The Federal Reserve cut interest rates by 0.25 percent in its FOMC meeting, but Chairman Jerome Powell’s comments shocked market expectations.

Why is the rupee weakening?

He clearly said that there is no guarantee of a rate cut in December because inflation is still above the target and there is uncertainty in the labor market. After this statement, there was an increase in American bond yields and strengthening of the dollar.

Domestically, dollar demand from oil marketing companies and outflow of foreign capital put additional pressure on the rupee. In the interbank foreign exchange market, the rupee opened at 88.37 and reached a low of 88.74 during trading.

There may still be pressure on the rupee

At the same time, on Wednesday the rupee had closed at 88.22 against the dollar. Analysts say that the rupee may remain under pressure in the coming days also. According to Anuj Chaudhary of Mirae Asset Sharekhan, strong dollar, weak domestic market and Fed’s strict policy can push the rupee towards lower levels.

Meanwhile, the dollar index fell marginally by 0.09 per cent to 99.12, while Brent crude oil fell by 0.65 per cent to $64.50 per barrel. A huge fall was also recorded in the domestic stock markets, where the Sensex fell by 592 points to close at 84,404 and the Nifty fell by 176 points to close at 25,878. Foreign institutional investors sold shares worth Rs 2,540 crore on Wednesday, putting pressure on both the market and the rupee.

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Trump Attack on BRICS: US President Donald Trump, who created a stir this year by imposing tariffs on countries around the world, is now worried about the American currency dollar. This supremo of the global superpower America feels that a big conspiracy is being hatched against the dollar, and he has held the BRICS countries responsible for this. Trump described BRICS as an “attack” on the US dollar and claimed that he threatened to impose tariffs on countries that wanted to join BRICS — after which they backed down.

Whose threat is to the dollar?

The BRICS group includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates (UAE). Trump says that this group is adopting an “anti-American policy”, so he has been warning of imposing additional tariffs on these countries. On the other hand, BRICS countries have expressed serious concern about the arbitrary tariffs being imposed by Trump, because it affects global trade.

In a bilateral meeting with Argentinian President Javier Milli, Trump said that he has a very tough stance on the dollar and, “Anyone who wants to transact in dollars will have an advantage over those who do not want to do so.”

Why is Donald Trump afraid?

Trump said, “I told all the countries that want to join BRICS… OK, but we will impose tariffs on your country. Everyone backed off. BRICS is an attack on the dollar.” He further said that if any country wants to join BRICS, “then I will impose tariffs on all your products coming to America.”

The BRICS countries said in a statement last month that such “indiscriminate increase” in tariffs could disrupt global trade and lead to trade-restrictive policies. The Trump administration has imposed high tariffs on many countries this year.

impact on india also

It is noteworthy that apart from the 25 percent base tariff, America has also imposed an additional 25 percent duty on products imported from India due to purchasing cheaper crude oil from Russia. In this way, a total of 50 percent US tariff is applicable on Indian exports, which is adversely affecting India-US trade.

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