Dollar vs Rupee: Weakness was seen in the Indian rupee on Friday, the last trading day of the week. The rupee fell four paise to 90.95 against the US dollar in morning trade. Withdrawal of foreign capital and negative start of domestic stock markets put pressure on the rupee. However, weakness in the dollar and softening crude oil prices helped limit the decline.
Why did the rupee break?
In the interbank foreign exchange market, the rupee opened at 90.91, but later slipped to 90.95. Earlier on Thursday, it had closed stable at 90.91 per dollar. During this period, the dollar index, which shows the position of the US dollar against six major currencies, fell by 0.09% to 97.70.
On Wednesday, in the interbank foreign exchange market, the Indian rupee closed at 90.91 against the US dollar with a gain of four paise. The rupee remained in a limited range during trading and registered a slight rise at the end of the day. According to market experts, rupee was supported by weakening dollar, buying by foreign institutional investors and stable trend in domestic stock markets. However, its momentum remained limited due to global geopolitical uncertainties and fluctuations in crude oil prices.
Pressure was also seen in the domestic stock markets. BSE Sensex fell 364.62 points to 81,883.99 in early trade and Nifty 50 slipped 117.15 points to 25,379.40. Impact of crude oil and FII, international oil standard Brent Crude fell by 0.07% to $ 70.70 per barrel.
What do experts say?
According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 3,465.99 crore on Thursday, putting additional pressure on the rupee. Expert Opinion According to Anuj Choudhary, research analyst at Mirae Asset Sharekhan, the rupee may remain in a negative trend amid increasing geopolitical tensions between the United States and Iran and uncertainty over trade tariffs.
The market is keeping an eye on the results of the US-Iran talks to be held in Geneva and employment data coming from America. He predicted that the dollar-rupee spot rate could remain in the range of 90.60 to 91.20.
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