The rupee declined against the dollar for the second consecutive day.
There has been a big fall in the rupee against the dollar in the currency market for the second consecutive day. If we look at the figures, the rupee has fallen by more than 50 paise against the dollar in these two days. The special thing is that the expectations of peace talks between America and Iran have increased. On the other hand, there has been a decline in the prices of crude oil. Even after that, the trend of falling rupee is not showing any signs of stopping. Due to which it has reached close to the level of 93.50 against the dollar. The special thing is that recently some measures were taken to raise the rupee. Even after that the rupee has not been supported. Let us also tell you what kind of figures are being seen regarding the rupee.
Rupee falls for the second consecutive day
On Tuesday, the rupee fell by 32 paise and closed at 93.48 (provisional) against the US dollar. The reason for this decline was the strengthening of the American currency and fluctuations in crude oil prices as well as uncertainties regarding the progress of peace talks in West Asia. Forex analysts said that despite the rise in domestic stock markets, the local currency did not get any support. This also had some impact on the recent decision of the Reserve Bank, under which it had relaxed the restrictions on betting in non-deliverable forward markets.
In the interbank foreign exchange market, the rupee opened at 93.25. It fell as low as 93.63 during the day’s trade, but ended the session at 93.48 (provisional) against the US dollar, down by 32 paise. On Monday, the rupee had closed at 93.16 against the US dollar with a fall of 25 paise. This means that the rupee has fallen by 57 paise against the dollar. In the last two sessions, the currency had gained 47 paise.
RBI had recently taken these decisions
On Monday, the Reserve Bank partially withdrew the guidelines issued on April 1, the purpose of which was to stop excessive speculation in the rupee. The banking regulator had fixed the limit of ‘net open positions’ in non-deliverable forward markets at $100 million (100 million USD) and directed banks to comply with it by April 10. Under the amended instructions, authorized dealers or banks can now re-offer non-deliverable derivative contracts linked to the Indian Rupee (INR) to users resident or non-resident in India. However, they must comply with certain restrictions related to ‘related-party transactions’. Additionally, the $100 million limit on ‘net open positions’ will still be applicable.
Will the rupee cross 94?
Mirae Asset Sharekhan’s Research Analyst Anuj Choudhary said that the rupee declined due to uncertainty regarding US-Iran talks and the rise in crude oil prices. The strength of the dollar also put pressure on the rupee. However, the rise in global markets saved the rupee from falling further to some extent. Chaudhary said that traders can take cues from the retail sales and ADP employment change data released from America. USD-INR spot price is expected to trade in the range of Rs 93.30 to Rs 93.90.
Strength in dollar index
Meanwhile, the dollar index—which measures the US dollar’s strength against a basket of six major currencies—rose 0.19 percent to 98.09. Brent crude, the global benchmark for oil, was trading 0.70 per cent lower at US $ 94.81 per barrel in futures trade. Analysts attributed this fluctuation in crude oil prices to persistent concerns over disruptions in oil supplies through the Strait of Hormuz. Apart from this, the ceasefire agreement between America and Iran is going to expire on Wednesday.
Stock market boomed
In the latest development, Iran’s chief negotiator on Tuesday said Tehran will not negotiate under pressure and threats, while US President Donald Trump indicated he is in no hurry to end the conflict with Iran. In the domestic stock markets, the 30-share Sensex closed at 79,273.33, up 753.03 points or 0.96 per cent, while the Nifty closed at 24,576.60, up 211.75 points or 0.87 per cent. According to exchange data, foreign institutional investors sold shares worth about Rs 1,059.93 crore on Monday.
