The Indian Rupee fell by 8 paise, closing at 86.96 against the US Dollar. This drop happened because foreign investors are selling Indian stocks, and the US Dollar is getting stronger. Forex traders believe the Rupee is likely to keep slipping as investors continue to pull out.
Today, the Rupee opened at 86.94, reached a high of 86.91, and a low of 86.98 before ending at its current value. This follows a bigger drop where the Rupee fell by 17 paise to 86.88 just two days ago.
The trade deficit in India is also affecting the Rupee. Exports dropped for the third month in a row, down 2.38% year-on-year to USD 36.43 billion, while imports increased by 10.28% year-on-year to USD 59.42 billion, mainly due to rising gold shipments.
The US Dollar Index, which shows how strong the Dollar is compared to other currencies, rose by 0.35% and is now at 106.95. In the oil market, Brent crude oil prices went up by 0.77% to USD 75.80 per barrel.
In the stock market, the BSE Sensex fell 29.47 points, settling at 75,967.39, and the Nifty dropped by 14.20 points to 22,945.30. Foreign Institutional Investors (FIIs) sold stocks worth ₹3,937.83 crores on Monday, based on exchange data.
Experts believe the Rupee will continue to weaken due to weak stock markets and the stronger US Dollar. However, the Reserve Bank of India (RBI) might step in to support the Rupee. Traders will also be looking for updates from the Federal Open Market Committee (FOMC) members for guidance.
In another note, Chinese President Xi Jinping held a meeting with business leaders, including billionaire Jack Ma, to help improve business confidence as the Chinese economy faces challenges.
Leave a Reply