Dollar Vs Rupee:  Today, on Monday, the Indian rupee hit its lowest level ever against the US dollar at 84.38 per dollar. This fall is only one paisa from Friday, but it is an important milestone for the Indian currency. The rupee has been under pressure for the past few months, and this situation has deepened due to the continuous outflow of foreign capital and weak trends in the domestic markets.

Withdrawal of foreign capital and its impact on the stock market

The condition of the stock markets is also affecting the rupee. On Friday, foreign institutional investors (FIIs) sold shares worth Rs 3,404 crore, which led to a further decline in the market. Meanwhile, a downward trend was also seen in the Indian stock markets. Both BSE Sensex and NSE Nifty saw a big decline in early trade.

The Sensex fell more than 484 points to reach 79,001 points, while the Nifty also fell 143 points to reach 24,004 points. These declines affected the shares of companies that were already under pressure, such as Asian Paints, Axis Bank, and Reliance Industries. However, some companies like Tata Motors and Maruti saw a slight increase in their shares.

Dollar Index and Crude Prices

In the international market, the dollar index stood at 105.05, showing a marginal increase of 0.05 percent. The strength of the dollar keeps the Indian rupee under pressure. At the same time, international crude oil prices have fallen, which affects Indian oil imports. Brent crude fell 0.37 percent to $ 73.60 per barrel.

Cash crunch and pressure on currency

The main reason for the fall of the rupee is the outflow of foreign capital and the hesitant sentiment of domestic investors. Unless the outflow of foreign capital is controlled and the position of the dollar does not weaken, the pressure on the rupee will remain.

To improve the Indian economy, it is necessary to attract foreign investment, but this will require economic and political stability.

What could happen next?

Experts believe that if foreign investment does not improve, the rupee may fall further. This may also increase inflation and import costs. However, if the dollar weakens or oil prices fall further, the rupee may improve.

It is worth noting that the Indian rupee has reached its lowest level, and this is causing many economic concerns. But if the government and the central bank take the right steps, then there can be hope for improvement in the situation.