In the US dollar, the condition of the rupee is being seen quite poor. As soon as the currency market is opened on Monday, the rupee has reached the lower level of one month. According to experts, the demand of dollar is increasing from foreign and local private banks. Due to which there is a constant weakness in the rupee. Apart from this, the dollar index which was trading at the level of 96 at one time, has gone beyond 98.
Apart from this, crude oil prices are trading around $ 70 in foreign markets, which had once come to $ 66 per barrel. On the other hand, the trade deal of India and America has not been done yet. If the trade deal between India and America is not done by August 1, then America can send tariff letters to India like other countries. The effect of which can be seen even more dangerous on India’s rupee. Let us also tell you what kind of figures are being seen in the currency market regarding money and dollars.
Rupee at one month’s lower level
On Monday, the rupee fell 20 paise to 86.36 against the US dollar in early trade. This declined due to the overall strength of the US currency in foreign markets and the negative trend in the domestic stock markets. Foreign currency traders said that the dollar’s perception weakened due to improvement in the index and the rupee crossed the significant level of 86.00, causing the decline to decline further. In the Interbank Foreign Currency Exchange Market, the rupee opened at 86.27 against the dollar.
In early trade, it reached a low of 86.36, which shows a decline of 20 paise in the previous closed price. On Friday, the rupee fell 4 paise to close at 86.16 against the US dollar. The special thing is that the rupee has come to a one -month lower level in the dollar. During the initial trading session on 23 June, he was seen trading at the level of 86.35.
These are the main reasons for the fall of the rupee
- The dollar index is seen doing flat business. By the way, in the last few days, the dollar index has seen a boom. The dollar index, which was once seen at the level of 96, came at 98.46.
- On the other hand, crude oil prices are seeing a rise in the global market. In foreign markets, the crude oil of the Gulf countries increased by 0.12 percent to $ 69.36 per barrel.
- Apart from this, there is an increase in demand of dollars from international banks and local private banks. The effect of which is being seen negative on the rupee.
- Now everyone’s eyes are on the results of the Indo-US trade talks, especially when the August 1st time for imposing possible fees on Indian exports is approaching. Due to lack of trade deal, pressure is also being seen on the rupee.
- On the other hand, investors are also taking alert stance. There is a lot of ups and downs in the stock market. When the market was opened in the morning, the Sensex had a decline of more than 150 points, in which recovery was later seen. Its effect is also being seen clearly on the rupee.
Will the rupee return to track again?
Finrex Treasury Advisors LLP’s Treasury Head and Executive Director Anil Kumar Bhansali said that with the improvement in the dollar, there are signs of decline in Indian rupee and it is expected to be between 85.90 and 86.40, which has a break in the rupee. He said that if the trade negotiations between India and the US fails or are delayed, then Indian exporters may face new pressure – which will increase the challenges of the rupee. However, if an agreement is reached, it can provide a very important relief.
Amit Prabari, MD, CR Forex Advisors, said that until then, uncertainty market participants are likely to be vigilant. Prabari further said that at the moment, there is a trend of weakness in the rupee. He said that the rupee could get support around 85.70-85.80, but after crossing the level of 86.00, the way to move towards 86.50-86.80 is open.