New Delhi:
Rupee Dollar Exchange Rate: The process of decline in Rupee (Rupee) continues. On Thursday, the rupee weakened 14 paise in early trade and reached its lowest level of 87.57 per dollar (Dollar). There is a possibility of cutting interest rates of RBI and the rupee declines due to the selling of foreign investors.

Why pressure on rupee?

Experts at Forex Market say that there are many reasons for the fall in the rupee –

• RBI’s possible interest rate cut – The market is expected to cut interest rates on 7 February 2025. This has weakened the notion of investors.
• Selling of foreign investors – Foreign institutional investors (FII) on Wednesday sold shares worth Rs 1,682.83 crore. This led to a decline in the stock market and also increased the pressure on the rupee.
• Dollar strength – US Dollar Index, which measures the dollar compared to the remaining six major currencies, rose 0.11% to 107.69. This also affected the rupee.
• Weak economic figures – The rupee declined further due to the indication of weak performance of India’s manufacturing sector.

Market condition

• The rupee started the business at 87.54 and soon reached a record low of 87.57.
• On Wednesday too, the rupee lost 36 paise to close at 87.43.
• In the international market, Brent Crude rose 0.13% to $ 74.71 a barrel, increasing the purchase of dollars of importers and put pressure on the rupee.

Will the rupee fall further?

Experts say that the rupee may be weaker in view of the frequent selling and global uncertainty of foreign investors. Also, if the RBI cuts interest rates, the rupee may be affected further.