Rupee Weakens: Impact of Global Tensions on Currency
The rupee fell by 30 paise to close at 86.34 against the US dollar on Tuesday. This drop happened because global crude oil prices went up and tensions in the Middle East grew.
Why is the Rupee Falling?
Rising Oil Prices
Brent crude oil prices, which set the global standard, rose by 1.60% to $74.40 per barrel. This increase was due to the ongoing conflict between Israel and Iran.
Global Conflicts
Tensions in Europe and the Middle East are getting worse. These issues are making investors nervous and affecting the rupee’s value.
Stock Market Decline
Indian stocks also fell. The BSE Sensex dropped by 212.85 points to 81,583.30, and the NSE Nifty fell by 93.10 points to 24,853.40.
Expert Opinions
Anil Kumar Bhansali, a financial expert, shared his thoughts:
- The rupee might fall further to 86.70 before it recovers.
- The ongoing war is making investors cautious, which affects the dollar’s value.
- New US tariffs and foreign investors selling stocks are also hurting the market.
Bhansali thinks the rupee will stay between 85.80 and 86.50 on Wednesday.
Other Economic News
Dollar’s Strength
The dollar index, which measures the US currency against others, rose by 0.20% to 98.19. This made the rupee’s situation worse.
Unemployment Rate Rises
India’s unemployment rate went up to 5.6% in May from 5.1% in April. This increase was mostly due to seasonal factors, according to government data.
Foreign Investors Buy Stocks
Even with the market downturn, foreign investors bought Indian stocks worth Rs 1,482.77 crore on Tuesday.
