Rupee continues to fall against the dollar, closes at a new low of 78.85

Rupee continues to depreciate against dollar

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According to experts, the weakness in the rupee may remain against the dollar and the rupee can reach the level of 79.5 per dollar in the short term, the rupee has seen a fall of 100 paise in the last 6 sessions.

Rupee against dollar (Dollar vs Rupee) continues to decline. In Tuesday’s trade, the rupee closed at a new record low of 78.85 with a fall of 48 paise. This fall in the rupee by foreign investors (FII) due to withdrawal of funds from the domestic market and increase in crude oil prices. in currency market today rupee against dollar ,Dollar rate in rupee) opened at the level of 78.53 and finally closed at the level of 78.85 with a fall of 48 paise. There is a continuous decline in the rupee and the rupee has lost 100 paise against the dollar in 6 trading sessions. At the same time, today the dollar index has risen to the level of 104.

What is the opinion of experts

Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said the Indian rupee has hit an all-time low against the US dollar amid a weak domestic equity market and rise in crude oil prices. At the same time, continuous selling by foreign investors also put pressure on the rupee. The risk appetite by investors in the domestic markets and continued selling pressure from foreign institutional investors (FIIs) is expected to impact the rupee negatively. Chowdhary said that higher crude oil prices may also affect the domestic currency. Jatin Trivedi, VP Research, LKP Securities, said the Indian rupee touched an all-time low of 78.85 against the US dollar in recent days due to sluggishness in the capital market with FIIs exiting the country. A sharp jump in crude oil prices from USD 105 to USD 114 also put pressure on the rupee. According to him, the rupee has depreciated by 100 paise against the dollar in just 6 trading sessions due to foreign investors’ stance and strict indications by the Fed. He said that if crude oil prices continue to fall, the rupee may continue to weaken further.

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what will be the forward direction

If market experts are to be believed, then the weakness in the rupee may continue further and the rupee may cross the level of 79. However, it is expected that the Reserve Bank can intervene from time to time to prevent the rupee from falling more than a limit. At the same time, Anuj Chaudhary has given an estimate that in the short term, the rupee can trade between 78 to 79.5 against the dollar.