The Indian rupee is continuously falling. The rupee witnessed another big fall on Monday, taking it to its all-time low. Today the rupee closed at 90.74 (provisional) against the US dollar, which is a fall of 25 paise. The decline was attributed to uncertainty over the India-US trade agreement and continued selling by foreign institutional investors. At one time it had reached its lowest ever level of 90.80 against the US dollar.
Rupee reached record low of 90.80 during trading
Foreign exchange traders said risk aversion and strong demand for the dollar by importers further weakened investor sentiment. At the interbank foreign exchange market, the rupee opened at 90.53 against the US dollar, but later fell during trading to a record low of 90.80, a decline of 31 paise from its previous close. It finally closed at a record low of 90.74 (provisional), down 25 paise. The Indian currency had closed at 90.49 on Friday, which was 17 paise lower.
Indian rupee becomes worst performing currency in Asia
“The rupee has hit a record low and has become the worst performing currency among Asian currencies. Despite better-than-expected foreign trade data, the rupee found no support. The main reason for this weakness is the huge imbalance in demand and supply. This is due to high demand for dollars by importers and persistent capital outflows,” said Dilip Parmar, Research Analyst, HDFC Securities. He said that the rupee will remain under pressure in the spot market in the near future. Its main resistance is at 90.95 and support at 90.50.
Foreign investors are continuously selling
Meanwhile, the dollar index, which measures the dollar’s strength against six major currencies, was down 0.08 per cent at 98.32 today. Global oil benchmark Brent crude futures rose 0.21 percent to $61.25 a barrel. According to stock market data, foreign institutional investors sold shares worth ₹1114.22 crore on Friday, withdrawing their investments.