By Admin 
Dollar vs Rupee: A major decline has been recorded in the Indian rupee amid increasing tension in the Middle East. At the beginning of the first trading day of the week, the rupee fell by 41 paise and reached its lowest level of 93.94 per dollar. There is huge pressure on the domestic currency due to the ongoing war in West Asia, high global crude oil prices and the strength of the US dollar. Forex traders say that the continuous withdrawal of foreign capital and the initial fall in the domestic stock markets have further weakened the rupee.
Big fall in rupee
The rupee opened at 93.84 per dollar in the Interbank Foreign Exchange Market and later fell to a record low of 93.94, showing a decline of 41 paise from the previous closing price. Earlier on Friday also, the rupee had gone below the level of 93 for the first time and fell by 64 paise to close at the all-time low of 93.53.
Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, rose 0.02 percent to 99.66. In the domestic stock markets, Sensex fell 1,306.27 points or 1.75 percent to close at 73,226.69 and Nifty fell 418.25 points or 1.81 percent to close at 22,696.25.
Internationally, the price of Brent crude fell by 0.60 percent to $ 112.90 per barrel. At the same time, according to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 5,518.39 crore on Friday.
Effect of war on currency
On the ongoing weakness in the rupee, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said that the rupee had improved for some time due to the bonds issued by SBI and the intervention of RBI, but the continuous decline remains a matter of concern. According to him, RBI does not want the rupee to weaken further and go below the level of 92.
This big fall in the Indian rupee is being seen at a time when the possibility of the ongoing war in the Middle East getting prolonged has increased. The tension between America, Israel and Iran has now reached its fourth week. On the other hand, US President Donald Trump and Tehran are continuously warning each other, indicating that this conflict is not going to end soon.
This war has had a direct impact on the prices of crude oil, which has created tremendous pressure in the global market. So far this month, crude oil prices have seen an increase of up to 50 percent, the impact of which is clearly visible on the Indian economy and the rupee.
Also read: Crude oil prices on fire, war in Middle East took Brent crude to $ 112; Know details