Indian Rupee vs US Dollar: The trend of decline in the Indian rupee continues. Due to the strength of the US dollar, the Indian currency remained in a limited range in early trade on Monday and fell by 5 paise to reach Rs 88.77 per dollar. Foreign exchange traders say that the rupee remains close to its all-time low.

Anil Kumar Bhansali, Head of Treasurer and Executive Director, Finrex Treasury Advisors LLP, says that the market sentiment for this pair (rupee-dollar) is influenced by the strength of the US dollar. Also, the mild risk-off environment at the global level and domestic factors such as the stable policy stance of the RBI and the outlook for controlled inflation are also contributing to this.

Bhansali further said that there has been a slight decline in the dollar index, which is due to the easing of trade tensions between America and China (US-China trade war). He also said that volatility in the global market and geopolitical developments will remain the major factors determining the direction of the rupee in the near future.

Why is the rupee falling?

In the Interbank Foreign Exchange Market, the rupee opened at Rs 88.75 per dollar and fell to Rs 88.77 within a short time. This shows a decline of 5 paise from the previous session’s closing price of Rs 88.72 per dollar. Earlier on Friday, the rupee had closed at 88.72. Meanwhile, the dollar index, which gauges the US dollar’s position against six major global currencies, declined 0.04 percent to 98.93.

Weakness was also seen in the domestic stock market. BSE Sensex opened 451.82 points lower at 82,049 points in early trade, while NSE Nifty 50 fell 109.55 points to 25,175.80 points.

Crude oil and FII stance

In the international market, Brent crude oil is trading at $ 63.67 per barrel with an increase of 1.50 percent. According to stock market data, foreign institutional investors (FIIs) were net buyers on Friday and bought shares worth Rs 459.20 crore. Overall, dollar strength, fluctuating crude oil prices and global economic instability are keeping the rupee under pressure.

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Indian rupee strongeer: Since the ceasefire from Pakistan on the border, there is a continuous jump in the Indian rupee. Once upon a time, after the Indian currency reached the record 86 against the dollar, it is once again seeing a jump. On Wednesday 14 May, the rupee strengthened 31 paise to 85.05 per dollar in early trade.

Forex traders believe that due to the rise in crude oil prices, the rupee may be under pressure in the coming days. However, in the last few sessions, Brent crude prices have reached close to $ 66 per barrel, which can increase India’s trade deficit. Also, the withdrawal of foreign capital also limited the growth of domestic currency to some extent. The rupee opened at 85.05 against the rupee, the rupee in the interbank foreign currency exchange market, which shows a gain of 31 paise in the previous closed price.

Josh showed in rupee

In early trade, it also reached 85.23 against the dollar. The rupee was stable at 85.36 against the US dollar on Tuesday. Meanwhile, the dollar index, depicting the US dollar position against six major currencies, fell 0.05 percent to 100.95.

Talking about the stock market, it saw a boom. The BSE Sensex gained 250.80 points to 81,399.02 points in the domestic stock market, while the Nifty rose 58.45 points to 24,636.80 points. International standard Brent crude fell by 0.54 percent to $ 66.27 per barrel.

Stock market also boom

According to the stock market data, foreign institutional investors were selling on Tuesday. He purely sold shares worth Rs 476.86 crore. It is worth noting that due to the softening of vegetables, fruits and pulses, the rate of retail inflation came down to nearly six years in April to 3.16 percent.

This has created a sufficient scope for another deduction in the repo rate in the monetary policy review of June for RBI. According to the official data released on Tuesday, inflation based on the Consumer Price Index (CPI) in April was 3.16 percent, the lowest level after July 2019. It was 3.15 percent in July 2019. Retail inflation was 3.34 percent in March, 2025 and 4.83 percent in April 2024.

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