New Delhi:
Rupee vs Dollar: After the strengthening of three consecutive business sessions in Indian rupees, there was a decline today. On Wednesday, March 19, the rupee weakened by 10 paise to 86.66 per dollar in early trade. The growing concerns about the strength of the dollar index and the global trade fee were seen on the rupee. However, the attitude of foreign investors in the domestic stock market and softening in the prices of crude oil gave a little support to the rupee.
Why did the rupee fall against the dollar?
The rupee opened at 86.60 per dollar in the Interbank Forex Exchange Market, but later went to a low of 86.68. After this, it was a little careful and was trading at 86.66 per dollar. The dollar index, which reflects the status of the dollar against the six major currencies, rose 0.09% to 102.98, which put pressure on the rupee.
Decline after three sessions rise
The rupee had shown continuous strength in the last three trading sessions. On Tuesday, March 18, the rupee climbed 25 paise to close at 86.56 per dollar. At the same time, the rupee was up 24 paise to 86.81 per dollar on Monday. The last trading day of the previous week had climbed 17 paise to close at 87.05 per dollar on Thursday 14 March. At the same time, the foreign exchange market was closed on Friday on the occasion of Holi. In these three sessions, the rupee had shown a total strength of 66 paise, but today it declined.
Experts believe that due to the strength of the dollar index and increasing uncertainties globally, there can be pressure on the rupee. However, if foreign investment continues in domestic stock markets, the rupee can get some relief. On Tuesday, foreign institutional investors (FII) invested Rs 694.57 crore in the Indian stock market.
Crude oil prices can be supported by a fall in prices
A good news for the rupee is that crude oil prices have been soft in the international market. Brent crude declined by 0.27% to $ 70.37 per barrel, allowing Indian currency some support.
Federal Reserve’s decision on interest rates
This decline of the rupee may be for some time, as the market will now monitor the decision taken on the interest rates of the US Federal Reserve. If the American Central Bank indicates the interest rate cuts, the rupee may be strengthened again