desk
Share
News Topical, Digital Desk : Yesterday, Tuesday, January 20th, the rupee had surpassed 91 against the dollar. Today, Wednesday, the rupee has slipped to a new record low. In early trade, it fell to 91.20 against the dollar, its lowest level to date.
Why is the rupee slipping?
The rupee is steadily weakening due to heavy dollar demand from metal importers. Foreign portfolio investor (FPI) outflows are also being considered a major factor. Weakness in the domestic equity market has also added to the pressure.
Dollar index fluctuates widely
The dollar index fluctuated significantly on Tuesday. It fell 0.50 percent yesterday to close at 98.37. The decline was driven by rising global uncertainty. Escalating trade tensions between the United States and European countries weakened the dollar index.
Trump's tariff threats and statements about retaliatory duties are increasing anxiety in global financial markets. Heavy selling in US equities also dragged the dollar index down.
Crude oil game
Rising crude oil prices have added to the pressure. Crude oil prices have risen amid geopolitical tensions, increasing India's import bill and further pressuring the rupee. It is anticipated that the India-European Union Free Trade Agreement may provide some support to the rupee. However, the rupee is expected to remain volatile this week.
Read More: Eyes turned away, profits gone... Focus on these stocks today, expect strong movement.
--Advertisement--
