In early trade on Tuesday, the Indian rupee reached its lowest level since mid -March. The main reason for this is the fall in euro and the rise in dollar index. On the other hand, there is a boom in dollar demand from currency traders and public sector banks. Apart from this, the rise in crude oil prices is also considered to be the main reason. This is not the main reason for the fall of the rupee. On Monday, the way foreign investors have withdrawn more than 6 thousand crore rupees by the stock market. They are also an important reason for the fall in the rupee. The decline in the stock market is being seen for the fourth consecutive day on Monday. Let us also tell you at which level the rupee is trading in the currency market against the dollar.
Rupee at 4 months lower level
The rupee reached a low of 86.9150 against the US dollar, but then fell 0.2 per cent to 86.8725. In recent seasons, the Indian rupee has also been troubled by the frequent withdrawal from local shares, a dull season of quarterly income and the lesser possibilities of the US-India trade agreement before the August 1 time limit. India is still waiting for concrete progress in the dialogue, while the perception of the agreement between the European Union and the US has deteriorated and the leaders of France and Germany are mourning its results. On Monday, a slightly weak price was recorded at 1.1584 after a decline in the euro over 1 per cent against the dollar on Monday. Meanwhile, the Asian currency was marginally weak between 0.2 per cent and 0.4 per cent.
What can you get relief
In a note, MUFG said that with the excessive and low appearance of the net short dollar position, the US dollar can get some relief in the near future. The note further states that the policy decision of the Federal Reserve to be held on Wednesday will also be focused, in which the softened stance may lead to a re -weakness in the US dollar, which will strengthen the wider Asian foreign currency outlook. Traders also pointed out a very close-term dollar-dollar-rupic swap rates, which is inspired by the Reserve Bank’s Maturity of Advance Dollar position at the end of the month, as well as anticipation of cash dollars related to IPOs. However, in the month of July, so far, the rupee has seen a decline of about one and a half percent.