Indian Currency: Forex traders say that strong demand for the US dollar from companies, importers and foreign investors has put heavy pressure on the Indian currency.

The rupee is in bad shape against the dollar, crossing the 90 mark. Find out the reason for the collapse.

Rupee vs Dollar: The Indian rupee continues to weaken. After a brief recovery during mid-day trade on Friday, it slipped again against the dollar. On the first day of the week, the rupee fell 16 paise to 90.11 in early trading on Friday. Rising crude oil prices and continued foreign capital outflows are believed to be the main reasons for this decline.

Why is the rupee falling?

Forex traders say strong demand for the US dollar from companies, importers, and foreign investors has put heavy pressure on the Indian currency. The rupee opened at 90.07 in the interbank foreign exchange market and later fell to 90.11 per dollar, a decline of 16 paise from its previous close. The rupee had closed at 89.95 on Thursday. Meanwhile, the dollar index, which shows the dollar's position against six major currencies, fell 0.11 per cent to 98.88.

According to market experts, the rupee's recent sharp decline is due in part to the lack of progress on a trade deal between the United States and India. Furthermore, continued selling by foreign investors in the domestic market has also weakened the rupee.

stock market slips

Pressure was also seen on the stock market front. The BSE Sensex fell 215.73 points to 85,741.24 in early trading, while the NSE Nifty 50 also declined 64.85 points to 26,121.60. International benchmark Brent crude was trading at $63.85 per barrel, up 0.17 percent. According to stock market data, foreign institutional investors (FIIs) were net sellers of Rs 438.90 crore on Friday.