New Delhi. Forex Market: The decline in rupee is not there. The rupee started on Friday with a big fall. Rupee drops 21 paise to close at 70.95 against the dollar, and 26 paise has dropped to $ 71 per dollar during the trade. Earlier on Thursday, the rupee touched the lower level of 70.90. Dollar demand and crude oil prices have increased due to the dollar demand by oil imports in rupee weakness at the end of the month.
According to Ajay Kedia, director of the Kedia Commodity, the rupee can trade in the range of 70.61 to 71.25 against the dollar.
15 paise down at 70.74 against dollar
On Thursday, the rupee depreciated by 15 paise to close at 70.74 per dollar as dollar’s demand and crude oil prices rose. The rupee touched a low of 70.90 dollars per dollar during intra-day, although later it had some improvement. At the same time, reaching the record low of rupee has made the fears of exporting expensive and current account deficit increase. The rupee had closed 49 paise lower at 70.59 against the dollar on Wednesday.
Dollar strength in the global market and the decline in the local market have also shocked the rupee. The dollar index, which showed dollar’s strength, reached the level of 94.56, with the strength of 0.11 percent. Earlier, the opening of the rupee was at 70.64 level.
Increased uncertainty for exporters: Fio
Exporters Association Federation of Indian Export Organizations (FIEO) said that the weakness of rupee has created uncertain conditions for exporters. FEO President Ganesh Kumar Gupta said that now exporters are not able to negotiate properly with Goods prices. He said that it is difficult to estimate the rupee.
Rupee and weak
This year, the rupee has broken 10 per cent till now. According to experts, foreign fund outflow, alert before macro-economic data, global crude oil price slipped to new low level from volatility.
Experts say that in the next few weeks, the rupee can touch 72 levels, which will make it more expensive and costlier than the dollar. GST collections are not expected to come as per expectation, rising dollar demand, political uncertainty and increasing demand by the US Fed are showing signs of weakness in rupee.