On Thursday, even though the Indian stock market opened strong with the Sensex going up by around 400 points, the Indian rupee continued to fall against the US dollar for the second day in a row. The rupee fell by 8 paise and reached ₹85.70 per dollar.
💱 Why is Rupee Falling?
According to foreign money traders, the Reserve Bank of India (RBI) is keeping a close watch on the rupee and is trying to control it. But since there is a high demand for dollars, the rupee is unable to gain much strength. This is keeping the rupee within a small trading range.
📉 Rupee at a Lower Level
In the interbank foreign exchange market, the rupee opened at ₹85.69 per dollar. During early trade, it dropped further to ₹85.70, which is 8 paise lower than the previous closing of ₹85.62.
🗣️ What Experts Say
Anil Kumar Bhansali, Chief of Treasury at Finrex Treasury Advisors LLP, said that traders are waiting for updates on the US trade deal and NFPR (Non-Farm Payroll) data to understand the market direction.
🌍 Global Market Factors
The US dollar index, which compares the dollar against six major currencies, rose by 0.07% to reach 96.84.
At the same time, international crude oil prices dropped. Brent crude fell by 0.72%, and was trading at $68.61 per barrel.
📊 What About Foreign Investors?
According to data from the stock market, foreign institutional investors (FIIs) sold Indian stocks worth ₹1,561.62 crore on Wednesday, which may also be a reason behind the rupee’s fall.
In summary, the Indian rupee is under pressure due to global market movements, dollar demand, and foreign investors pulling out money from Indian markets.
