Rupee hits historic low against dollar; what is the reason?

News Topical, Digital Desk : The rupee fell by 32 paise to an all-time low of 89.85 per dollar (Dollar vs Rupee) in early trade on Tuesday due to the widespread strength of the US currency in the overseas markets and continuous outflow of foreign capital.
Foreign exchange traders said that strong demand for the dollar from companies, importers and foreign investors put pressure on the rupee.

At what level did the dollar index come?

The rupee opened at 89.70 against the US dollar in the interbank foreign exchange market. It then fell to a record low of 89.85 per dollar, a fall of 32 paise from its previous close. The rupee had closed at 89.53 per dollar after falling to 89.79 during the day's trade on Monday.
Meanwhile, the dollar index, which gauges the dollar's strength against six major currencies, stood at 99.41.

stock market crash

On the domestic stock market front, the Sensex fell 223.84 points or 0.26 percent to 85,418.06 in early trade, while the Nifty slipped 59 points or 0.23 percent to 26,116.75. International benchmark Brent crude was down 0.03 percent at $63.15 per barrel. According to stock market data, foreign institutional investors (FIIs) were sellers on Monday, selling shares worth a net Rs 1,171.31 crore.

What are the experts' estimates?

Experts believe the currency's decline is due to daily selling by foreign portfolio investors (FPIs) and NDF expiry covering without any support from the RBI. According to a Reuters report, the RBI likely sold dollars to prevent the currency from falling below the 90 level.

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