USD INR Exchange Rate: Rupee weak against dollar! Rupee falls to 90.11..; Investors focus on India-US trade talks

• Rupee falls again to 90.11
• Indian currency falls due to global cues
• The next few days will be decisive

USD INR Exchange Rate: The rupee has been falling steadily against the dollar for a few days now. The Indian rupee fell by 17 paise to 90.11 against the US dollar in early trade today. Rising US dollar demand from importers and risk-averse market sentiment weighed on investor sentiment. However, investors are keeping an eye on the ongoing Indo-US trade talks, which are expected to support the rupee in the coming days. The rupee is expected to remain in the range of 89.70 to 90.20.

The rupee opened at 89.95 against the US dollar in the interbank foreign exchange market, but soon settled at 90.11, down 17 paise from its previous close of 89.87. There are several main reasons for the depreciation of the rupee:

• US Dollars are in high demand from importers.
• An atmosphere of depression has been created in the domestic stock market.
• Foreign Institutional Investors (FII/FPI) continued to withdraw funds from the Indian market.
• Foreign investors sold shares worth ₹1,651.06 crore on Wednesday as well, according to exchange data.

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Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors LLP, said USD/INR is expected to range between 89.70 and 90.20 today. Amidst these negative cues, investors are also keeping an eye on cues from the Indo-US trade talks. US Trade Representative (USTR) Jameson Greer said that he has received the best offer so far from India on the proposed trade deal.

Greer told the Senate that while both sides are trying to speed up the first phase of the proposed Bilateral Trade Agreement (BTA), India has objections to certain row crops such as maize, soybeans, wheat and other meat and products. Anil Kumar Bhansali said the statement from the trade union could be positive for the rupee, although short positions may see the rupee fall after the deal is finalized.

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Global markets and crude oil prices have also fallen. Globally, the dollar index, which measures the dollar’s strength against six currencies, was trading down 0.15 percent at 98.63. The decline came as the Federal Reserve (FED) refused to give more aggressive guidance on rate cuts.

On the other hand, global oil benchmark Brent crude futures were trading 0.22 percent higher at $62.35 a barrel. In the domestic bourses, the Sensex gained 80.15 points to 84,471.42 and the Nifty gained 34.40 points to 25,792.40.