Big drop! The rupee crosses 90 against the dollar for the first time. What is the reason for the decline?
The Indian rupee witnessed a historic fall against the US dollar today, Wednesday. This is the first time the rupee has weakened to this extent. The rupee reached ₹90.27 against the dollar. Crossing the 90 mark, it hit a record low for the Indian currency. However, the weakness of the dollar and the fall in crude oil prices somewhat mitigated this sharp decline.
Big fall! Rupee crosses 90 against the dollar for the first time!
On Wednesday, the Indian rupee touched a new low against the US dollar. In early trading, the rupee weakened by six paise to close at 90.02 per dollar. Currently, it stands at 90.21 against the dollar.
This directly means that you will now have to pay approximately 90 rupees for one dollar (rupee per dollar). This is the first time the rupee has fallen so much against the dollar.
Main reasons for the rupee’s decline:
According to foreign exchange traders, the rupee is under pressure due to two main reasons:
- First, high levels of buying of US dollars by banks.
- Second, foreign capital outflow.
Foreign institutional investors (FIIs) are continuously withdrawing money from Indian markets. According to the data, FIIs sold shares worth ₹3,642.30 crore yesterday. This created selling pressure on the rupee. On Tuesday, the rupee closed at 89.96 per dollar.
Gloomy sentiment in the domestic stock market as well:
Besides the decline in the rupee, there is also a gloomy sentiment in the domestic stock market. In early trading, the Sensex fell by 165.35 points to 84,972.92 points, and the Nifty slipped by 77.85 points to 25,954.35 points.
