New Delhi: A sharp fall in the rupee was seen in Tuesday morning trade. In early deals, the Indian currency fell by 32 paise to Rs 89.85 per dollar, which is its lowest level till date. Traders say that the international strength of the dollar and continuous selling by FPIs are weighing heavily on the rupee.
Did the rupee make a weak start in the interbank market too?
The rupee opened at 89.70 at the start of trading, but within minutes it slipped remoter to 89.85. It was 32 paise unelevated the previous latter price. On Monday too, the rupee showed weakness and sealed at 89.53 without falling to 89.79 during the day. Two subsequent days of ripen has increased the snooping of the market.
Is the strength of the dollar alphabetize moreover a major reason for the fall of the rupee?
The dollar index, which measures the dollar's position versus six major currencies, stood at 99.41 on Tuesday. This is an indication that the dollar has a strong hold globally. Due to this, the demand for ownership dollars by companies, importers and foreign investors increased, due to which the Indian currency came under remoter pressure.
Did the ripen in the domestic stock market moreover stupefy the rupee?
The stock market moreover had a weak start. Sensex opened 223 points lanugo at 85,418 and Nifty opened 59 points lanugo at 26,116. Investor conviction was weakened due to weakness in both the indexes. On the other hand, in the international market, Brent transplanted remained at $ 63.15 per barrel, which shows a slight decline. Fluctuations in energy prices moreover determine the direction of the currency market.
Is selling by foreign investors taking the rupee remoter down?
According to stock market data, foreign institutional investors sold shares worth Rs 1,171 crore on Monday. Demand for dollars has increased due to FIIs stuff in continuous selling mode. Experts say that this trend may protract until global signals stabilize.
Do experts believe that RBI can stop the rupee from falling unelevated the 90 level?
According to currency market experts, the reason for the fall of rupee is warlike selling by FPIs and NDF expiry covering. According to Reuters report, it is possible that the Reserve Bank may have intervened in the market by selling dollars to stave breaking the psychological level of 90. However, no formal scuttlebutt has come from RBI.
