The Indian rupee weakened to its record intra-day low in early trade on Friday. The rupee fell by 19 paise and was seen trading at 93.08 against the dollar, crossing the level of 93 for the first time.
The rupee opened at 92.92 per dollar at the interbank forex market and soon fell to 93.08, an all-time low. This fall represents a weakness of 19 paise compared to the previous closing level. On Wednesday, the rupee fell 49 paise to close at a record low of 92.89 against the US dollar.
What is the reason for the decline?
According to foreign exchange traders, the rupee remains under pressure due to the strength of the US dollar and continuous selling by foreign institutional investors (FIIs). The ongoing tension in West Asia has also affected the market sentiment.
Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said the foreign exchange markets remained closed on Thursday due to Gudi Padwa. The value of Rupee looks weak because RBI itself is saving it from falling further by selling dollars. He said FPIs were selling on Thursday when Sensex and Nifty fell to 21-month low.
- Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, was trading 0.17 percent higher at 100.25.
- Global oil benchmark Brent crude was trading 1.64 per cent lower at US$106.9 per barrel in futures trade.
- Talking about the domestic stock market, Sensex recovered from Thursday’s fall and rose 960.67 points or 1.29 per cent to 75,167.91, while Nifty rose 311.50 points or 1.35 per cent to 23,313.65.
- According to exchange data, foreign institutional investors sold shares worth Rs 7,558.19 crore on a net basis on Thursday.