Indian rupee against US dollar on Tuesday 5 paise weaker to 90.22 Registered a decline while trading at Rs. This weakness is mainly Strong dollar, rising crude oil prices and withdrawal of funds by foreign investors. Due to which the demand for dollars has increased in the market and the rupee remained under pressure.
initial business situation
Rupee in foreign exchange market Opened at 90.24 level And soon with a fall of 5 paise 90.22 per dollar But was trading. Rupee in last session closed at 90.17hence this rise/weakness reflects the continuing fluctuations of the rupee.
Major causes of weakness
According to analysts, some of the major reasons behind the weakening of the rupee are:
• dollar strength Globally, the strengthening of the US currency has put pressure on the rupee.
• rising prices of crude oil — Rising oil prices increase the pressure of currency weakness for oil importing countries like India.
• withdrawal of foreign investors — The rupee has also weakened due to selling of shares by foreign institutional investors (FIIs).
market signals
According to other market cues, the dollar index, which measures the relative strength of the US dollar against other major currencies, also showed a firmer trend, putting further pressure on the rupee.
This pressure on the rupee reflects global economic uncertainties and changing investment sentiment, due to which the domestic currency remains under slight pressure.
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