USD INR Exchange Rate: In early trade on Thursday, the Indian rupee fell by 17 paise against the US dollar and fell to 90.11. Increasing demand for US dollars from importers and risk aversion in the market sentiment affected the morale of investors. However, experts are keeping their eyes on the ongoing trade talks between India and America, which is expected to support the rupee in the coming days. The rupee is expected to remain in the range of 89.70 to 90.20.
Main reasons for fall in rupee
At the Interbank Foreign Exchange, the rupee opened at 89.95 against the US dollar, but soon fell to 90.11, 17 paise lower than its previous close of 89.87.
The main reasons behind this decline are-
- Demand for dollars: More demand for US dollars from importers.
- Market slowdown: Lazy atmosphere in the domestic stock market.
- Outflow of foreign funds: Continuous withdrawal of funds from the Indian market by Foreign Institutional Investors (FII/FPI). According to exchange data, foreign investors sold shares worth Rs 1,651.06 crore on Wednesday also.
Anil Kumar Bhansali, Treasury Head, Finrex Treasury Advisors LLP, said USD/INR is expected to range from 89.70 to 90.20 today.
Support expected from trade deal
Amidst these negative signals, investors are also keeping an eye on the signals coming from India-US trade talks. US Trade Representative (USTR) Jamieson Greer has said that the proposed trade agreement is the ‘best’ he has ever received from India. Offers have been received.
Greer told the Senate that there is opposition in India to some row crops (such as corn, soybean, wheat) and other meat and products, while both sides are trying to quickly complete the first phase of the proposed Bilateral Trade Agreement (BTA). Anil Kumar Bhansali said that this statement of the trade team can be positive for the rupee, however, after the deal is finalized, the rupee may see some decline in short positions.
Global market and crude oil situation
On the global front, the Dollar Index, which gauges the dollar’s strength against six currencies, was trading 0.15 per cent lower at 98.63. This decline came due to the Federal Reserve (FED) reducing rates and not giving more strict guidance.
Also read: Good news for those who got PF cut! EPFO is going to deposit Rs 52,000 in your account, what are the complete details
On the other hand, global oil benchmark Brent Crude was trading 0.22 percent higher at $62.35 per barrel in futures trade. In the domestic equity market, Sensex was trading 80.15 points higher at 84,471.42 and Nifty was trading 34.40 points higher at 25,792.40.
Comments are closed.