There is a continuous decline in the rupee against the dollar.
Due to the rise in crude oil prices, once again a decline in the rupee was seen against the dollar. The special thing is that the dollar index is also trading with a decline. On the other hand, the stock market is also trading with a decline. On the contrary, in the last few days, foreign investors have made good purchases from the stock market. If experts are to be believed, there may be fluctuations in the rupee in the coming days. The reason for this is that the factors which destabilize the rupee are still working in the market. Let us also tell you at what level the rupee is trading against the dollar.
decline in rupee
In early trade on Monday, the rupee fell 5 paise to 88.77 against the US dollar, trading in a limited range. Foreign exchange traders said that the rupee is hovering near its life time lower level. At the same time, RBI is also keeping an eye on the fall of the dollar-rupee pair towards 88.80. At the Interbank Foreign Currency Exchange market, the rupee opened at 88.75 and fell to 88.77 against the dollar, showing a decline of 5 paise from its previous closing price. On Friday, the rupee had closed at 88.72 against the US dollar.
From dollar index to stock market decline
- Meanwhile, the dollar index, which gauges the dollar’s strength against six currencies, fell 0.04 percent to 98.93.
- International market Brent crude futures increased by 1.50 percent to $ 63.67 per barrel. However, last week there was a decline in it.
- On the domestic stock market front, Sensex fell 451.82 points to 82,049 in early trade, while Nifty fell 109.55 points to 25,175.80.
- Meanwhile, according to exchange data, foreign institutional investors bought shares worth Rs 459.20 crore on Friday.
- According to RBI data, India’s foreign exchange reserves declined by $ 276 million to $ 699.96 billion during the week ending October 3.
- India’s foreign exchange reserves had declined by US $ 2.334 billion to US $ 700.236 billion in the last reporting week.
What do experts say?
Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said that the market sentiment for the pair has been influenced by the strengthening of the US dollar amid a risk-off stance globally and domestic factors including RBI’s stable policy stance and controlled inflation scenario. Bhansali said that after the slowdown in the US-China trade war, there has been a slight decline in the dollar index. He further said that global market fluctuations and geopolitical developments will remain the key drivers in the near future.