On Thursday, the rupee fell 38 paise to close at a record low of 90.32 against the dollar. The rupee today opened at 90.43 against the US dollar, then fell to 90.56, which is 24 paise lower than its previous closing price. Meanwhile, the dollar index, which measures the dollar’s strength, was trading 0.02 percent higher at 98.37.
Brent crude oil was trading 0.67 percent higher at $61.69 per barrel. In the domestic stock market, the 30-share benchmark Sensex was trading 400 points higher at 85,215 and Nifty was trading above 26,000, up 118 points. According to exchange data, foreign institutional investors sold shares worth ₹2,020.94 crore on Thursday.
Experts believe that uncertainty over the India-US trade agreement and continued foreign investment outflows are putting pressure on the rupee. Foreign currency traders say the rupee is falling due to heavy dollar buying by importers amid the rise in global precious metal prices.
India-US trade agreement
The trade agreement between India and US is in its final stage, but no definite outcome has been achieved. It is not clear yet when the deal will happen, due to which the Indian Rupee is under pressure. Uncertainty regarding the trade deal has increased concerns among investors and traders, making investors cautious.
Foreign investor selling
Depreciation of Rupee is also a major reason for the decline of Indian Rupee. Continued selling by Foreign Portfolio Investors (FPIs). Foreign investors withdrew ₹2,020.94 crore from the Indian stock market on Thursday. So far in December, they have sold a total of about $2.5 billion (₹22,500 crore) in equities and assets. This selling is putting pressure on the rupee.