Dollar vs Rupee / Big counterattack by the dollar, Rupee devastated by the biggest fall of the month!

Dollar vs Rupee: The dollar once again showed strength on Monday, due to which the Indian rupee recorded its biggest fall in a month. This fall in the rupee has increased the concern in the financial market. Global economic uncertainties and the possibilities arising from Donald Trump's policies after he became the President of the US have put investors in a dilemma.

Effect of dollar strength and rupee

Donald Trump's tariff war policy is creating a trade war situation globally. This has a direct impact on the currency market, due to which foreign investors are continuously withdrawing money from the Indian market. Along with this, the unstable prices of crude oil have increased additional pressure on the Indian rupee. On Monday, the rupee closed at 87.33 per dollar (provisional) with a fall of 38 paise in the forex market. This is considered to be the biggest fall of the rupee in the last one month.

Forex market situation

According to forex traders, the rupee has definitely weakened against the dollar, but the trend for the dollar in the international market also remains weak. Despite this, the rupee did not get support and it closed weak. Apart from this, the selling in the local stock market has also affected the business sentiment.

Rupee movement: before and now

The rupee opened weak at 87.24 per dollar in the forex market on Monday and due to volatility during the day, it reached a low of 87.36 per dollar. However, during this period it also went to a high of 87.16 per dollar, but finally closed at 87.33 per dollar.

Earlier, on February 5, a big decline was also seen in the rupee, when it fell by 39 paise against the dollar. At the same time, on Friday, the last trading day of last week, the rupee closed with a gain of 17 paise at 86.95 per dollar.

Global factors and economic indicators

The strength of the dollar can be gauged from the dollar index, which measures the value of the dollar against six major global currencies. On Monday, it fell 0.15 percent to 103.65. At the same time, the price of Brent crude oil rose 0.28 percent to $ 70.56 per barrel.

Effect on stock market

The impact of rupee weakness was also seen in the Indian stock market. The BSE Sensex closed down 217.41 points at 74,115.17 points, while the Nifty closed down 92.20 points at 22,460.30 points. Foreign portfolio investors had also sold shares worth Rs 2,035.10 crore on Friday, which kept the market under pressure.

Conclusion

The pressure on the rupee is increasing amid the strength of the dollar and global economic uncertainties. Both the Indian currency and the market are being affected due to the selling by foreign investors, volatility in crude oil prices and the possibility of a global trade war. In the coming days, the position of the rupee and the movement of the market will largely depend on global developments and domestic economic policies.