There was a lot of positive news regarding the rupee on Tuesday. An increase of 17 paise was seen in the rupee against the dollar. But on Wednesday the trend of falling rupee started again. Due to the increasing demand for dollars, there is a lot of movement in the currency market of India. Due to which a decline is being seen in the rupee against the dollar. If we look at the figures, the rupee has fallen by 20 paise against the dollar and once again the value of one dollar has crossed Rs 90.
However, experts say that trade talks are going to start again between America and India from today. Also, the US Central Bank Fed can announce a cut in interest rates in its policy. Due to which the rupee may appear to be getting support. Let us also tell you what kind of story the currency market is telling?
Rupee falls again
The rupee fell 20 paise to 90.07 against the US dollar in early trade on Wednesday. The rupee weakened due to demand for the dollar from importers, tariff concerns and market apprehensions over the US Federal Reserve’s policy decision. Foreign currency traders say that all eyes will be on the US-India trade talks, which may give some strength to the rupee in the coming days.
India and America will begin three-day talks on the first phase of the proposed bilateral trade agreement here from December 10. In the Interbank Foreign Currency Exchange market, the rupee opened at 90 against the US dollar. Then it weakened to 90.07 per dollar, which shows a decline of 20 paise compared to the previous closing price. The rupee had closed at 89.87 against the US dollar on Tuesday.
Will there be further decline?
Anil Kumar Bhansal, head of treasury and executive director, Finrex Treasury Advisors LLP, said that the rupee had stabilized at 89.87 against the US dollar on Tuesday, but with the dollar index reaching the level of 99.20 on Wednesday, the rupee is expected to remain in the range of 89.70-90.20 throughout the day. Traders say that the market is keeping an eye on what stance US Federal Reserve Chief Chairman Jerome Powell will take in this week’s meeting.
Dollar index and stock market rise
Meanwhile, the dollar index, which gauges the dollar’s strength against a basket of six currencies, was trading 0.01 per cent higher at 99.23 amid fears of an interest rate cut by the Federal Reserve. Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, stood at 99.23 with a rise of 0.01 per cent.
On the domestic stock market front, Sensex rose 134.71 points to 84,800.99 points in early trade while Nifty rose 41.50 points to 25,881.15 points. International standard Brent crude stood at $ 62.06 per barrel with a gain of 0.19 percent. According to stock market data, foreign institutional investors (FIIs) were sellers on Tuesday and sold shares worth a net Rs 3,760.08 crore.