Rupee vs Dollar: Rupee loses its strength, Indian currency cowers in the face of Trump's dollar roar
Indian Currency: The rupee remained under pressure due to a strong US dollar and negative sentiment in domestic stock markets. The rupee opened at 90.69 at the interbank foreign exchange market, down from its previous close of 90.61.
The rupee is in bad shape against the dollar
Rupee vs Dollar: On Friday, the last trading day of the week, the Indian rupee did not show the strength it had registered the previous day. In early trade, the rupee fell eight paise to 90.69 against the US dollar. A strong US dollar and a negative sentiment in domestic stock markets kept the rupee under pressure. The rupee opened at 90.69 in the interbank foreign exchange market, showing a decline from its previous close of 90.61.
Why did the rupee fall?
According to foreign exchange traders, the dollar's strength has limited the upside potential for emerging market currencies, particularly the rupee. While markets initially welcomed the India-US trade agreement positively, new concerns emerged following the White House's release of a fact sheet. This document outlines the terms of the agreement, which include India's elimination or reduction of tariffs on several US industrial and agricultural products. This has increased investor caution regarding the impact on the trade balance and domestic industries.
Meanwhile, Commerce Secretary Rajesh Agarwal clarified that India has fully protected its sensitive areas in the trade negotiations and that key clauses have been preserved under the interim agreement. He also said that teams from both countries are working to translate the joint statement into a legal agreement, which is likely to be finalized by the end of March.
The rise came a day earlier
The rupee strengthened by 17 paise to close at 90.61 on Thursday, but the dollar maintained its strength on Friday, with the dollar index rising 0.02 percent to 96.94. Domestic stock markets also declined. The Sensex fell 683.72 points to 82,991.20 in early trade, and the Nifty fell 207.15 points to 25,600.05.
In the international market, Brent crude oil prices fell 0.16 percent to $67.41 per barrel, reflecting a slight softening in crude oil prices. According to stock market data, foreign institutional investors (FIIs) remained bullish on Thursday, purchasing shares worth ₹108.42 crore. Despite this, global cues and a stronger dollar kept the rupee under pressure.