Rupee continues to fall (Image Source: Internet)
New Delhi: The Indian rupee fell 32 paise to close at 93.48 per dollar on Tuesday. The decline was primarily due to a strong US dollar and fluctuating crude oil prices. The ongoing tensions in West Asia and uncertainty surrounding peace talks weakened market confidence.
The potential for supply disruptions around the Strait of Hormuz is volatile, leading to volatile crude oil prices. The situation regarding talks between the US and Iran remains unclear, raising concerns among investors.
The Reserve Bank of India recently relaxed some regulations imposed to prevent speculation on the rupee. However, the $100 million limit remains in place. This move has also put some pressure on the rupee, potentially increasing market volatility.
The stock market did not support the rally. Although domestic stock markets remained strong— The BSE Sensex rose nearly 753 points. Nifty 50 also gained 211 points. But the rupee did not benefit from this, remaining under constant pressure.
The dollar index rose to 98.09, further strengthening the dollar. Meanwhile, Brent crude remained around $94.81 per barrel. Rising crude oil prices increase pressure on importing countries like India, weakening the rupee.
According to experts, the rupee may remain under negative pressure for the time being. According to Anuj Choudhary, the rupee is weakening due to US-Iran tensions and high oil prices. It may remain in the range of 93.30 to 93.90 in the coming days.
Foreign investors have also withdrawn funds from the Indian market, further pressuring the rupee. Selling of approximately ₹1,059 crore was recorded on Monday.
The rupee's weakness is not solely due to domestic factors but is also linked to global conditions. Until tensions in the Middle East ease and oil prices stabilize, the rupee may remain under pressure.
