Dollar vs Rupee: Heavy fall in Rupee against Dollar, falling by 18 paise and closing at 86.04.

Mumbai: The rupee fell 18 paise against the US currency on Friday and closed at 86.04 per dollar for the first time. The rupee remains under pressure due to the strengthening of the dollar and capital withdrawal by foreign institutional investors. Forex traders said rising crude oil prices abroad and negative sentiment in domestic stock markets also kept the rupee under pressure. He said that at the same time, the dollar has strengthened due to increased demand amid fears of restrictive trade measures by the new US government under the leadership of Donald Trump after January 20.

The rupee opened at 85.88 per dollar in the interbank foreign exchange market. During trading it reached a high of 85.85, however, it finally closed at its lowest ever level of 86.04 against the dollar. This is a big fall of 18 paise compared to the previous closing price. The rupee had closed at 85.86 against the US dollar on Thursday.

Reason for fall in rupee

Mirae Asset Sharekhan Research Analyst Anuj Chaudhary said the rupee hit another record low due to the decline in domestic markets and continued foreign capital outflows. A strong US dollar and rise in crude oil prices also put pressure on the rupee. He said that the rupee may remain under pressure due to weak trend in domestic markets, strong dollar and continuous withdrawal of foreign capital. Rising crude oil prices as well as rising US bond yields may put further pressure on the domestic currency.

Slight increase in dollar index

Anuj Chaudhary further said that any intervention by the Reserve Bank can support the rupee at lower levels. Investors will be eyeing the jobs report in the non-agricultural sector. The spot price of dollar-rupee is likely to remain between Rs 85.80 and Rs 86.15. Meanwhile, the dollar index, which gauges the US dollar's position against six major currencies, stood at 109.01, up 0.01 per cent. The yield on 10-year US bonds also reached the April 2024 level of 4.69 percent. International standard Brent crude stood at $ 78.43 per barrel with a gain of 1.96 percent.

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Domestic stock market also declined

In the domestic stock market, BSE Sensex fell by 241.30 points at 77,378.91 points, while Nifty slipped by 95.00 points and closed at 23,431.50 points. The decline in domestic markets has continued for the last three sessions. According to stock market data, foreign institutional investors (FIIs) were net sellers in the capital market and sold shares worth Rs 2,254.68 crore on Friday.