The rupee recorded closed at the lower level on Tuesday in the dollar.
The rupee is getting weaker. It is constantly weakening. From the government to the RBI, there has been all the emphasis to raise the money. Even after that, the rupee has not died yet. Surprisingly, in the current year, the rupee has seen a decline of more than 3 percent so far. Whereas the rupee has fallen more than 5 percent due to the peak of the current year. If we look at the current data, the rupee has closed on its record low on September 2. Whereas on May 2, the rupee was in its strongest position in the current year during the trading session.
According to experts, the effect of tariff is being seen more in the rupee. Due to which the situation is continuously deteriorating. Now Trump has also announced to put tariffs on pharma. This tariff can be imposed up to 200 percent. In such a situation, the situation of the rupee can be seen even worse. In such a situation, the big question is whether the situation of the rupee will improve or the rupee will be seen further. Let us also try to explain the figures in the language.
How much did the rupee fall
On Tuesday, the rupee fell 8 paise against the US dollar to close at 88.18 (provisional) life time at the lower level. There is also the reason for this. The Indo-US trade deal is going through a period of uncertainty. Also, weak domestic stock markets are constantly putting pressure on the rupee. Foreign currency traders said that the rupee is trading close to the lowest level so far amid uncertainty on American trade charges as it has a risk of decline. Apart from this, he said that continuous foreign capital withdrawal or strength of dollar may fall further.
On Monday, the rupee reached its lifetime lower level 88.33 against the US currency. In the Interbank Foreign Currency Exchange Market, the rupee opened weak at 88.14 against the US dollar, then fell to a low of 88.20. Finally, the rupee closed at 88.18 (provisional) against the US dollar, which is 8 paise less than the previous closed price. On Monday, the rupee closed at a record low of 88.10 against the US dollar.
More than 5 percent broken rupee in 4 months
The special thing is that in 4 months, the rupee has seen a decline of more than 5 percent. Looking at the data, on May 2, the rupee was on the current year’s peak at the level of 83.76. Since then, the rupee has seen a decline of 5.28 percent. At the same time, in the current year, there has been a decline of more than 3 percent in the rupee. The rupee was seen at the level of 85.554 on the last trading day of last year. Since then, the rupee has seen a decline of about 3 rupees. This means that the rupee has lost 3.06 percent in front of the dollar. Which can be called a major decline. The special thing is that India’s rupee has become the worst performing currency in Asia in the Asian region.
Can the rupee fall more?
Research analyst of Mirae Asset Sharekhan’s currency and commodities, Anuj Chaudhary, said that we hope that the rupee will trade with a slight negative attitude as uncertainty for business charges and weak domestic markets can put pressure on the rupee. Positive trend in the withdrawal of foreign institutional investors and crude oil prices can put more pressure on domestic currency. Traders can take hints from ISM manufacturing PMI data coming from the US. Chaudhary said that investors can be cautious before the non-agricultural payroll report coming from America this week. He further said that the market may fluctuate before the speech of US President Donald Trump on Tuesday. The spot price of dollars/rupees is expected to be between 87.80 and 88.50.
Market fall
- Meanwhile, the dollar index has seen a rise and the dollar rose 0.63 percent to 98.38.
- In the global market, Brent crude was trading at $ 69.38 per barrel in crude futures trading.
- In the domestic stock market, the Sensex fell 206.61 points to close at 80,157.88, while the Nifty fell 45.45 points to close at 24,579.60.
- According to exchange data, foreign institutional investors sold shares worth Rs 1,429.71 crore on Monday.
Talk about trade is going on
Meanwhile, Commerce and Industry Minister Piyush Goyal said on Tuesday that India is talking to the US on bilateral trade agreement (BTA). He said that India has already signed the Free Trade Agreement with Australia, United Arab Emirates, Mauritius, Britain and four European countries with EFTA. India and America are talking about this agreement from March. So far, five rounds of talks have been completed. After levying a 50 percent fee from August 27, the US team has postponed India’s visit to India for the next round of talks, which was scheduled to begin on 25 August. So far no new date has been fixed for the sixth round of talks. Amid tension between India and the US, Finance Minister Scott Besant said that eventually both great countries will find a solution to this problem.