By Admin 
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.
Also read: There was a brake on the rise of gold, know at what rate gold was being sold from Delhi to Chennai on 16th December.