Rupee Dips Against US Dollar Today: Key Factors Affecting Forex Market

Indian rupee on Tuesday skidded 12 paise to open at 68.84 against US dollar in early trade, reported Press Trust of India (PTI). The fall in Indian currency is due to fresh buying of the American currency by importers amid sustained foreign fund outflows. According to forex dealers, US dollar's strength against a basket of some currencies overseas too weighed on the Indian currency today. On Monday, the local currency gained 15 paise against the US dollar to close at 68.72. Sustained dollar selling by exporters and banks amid a rally in equities and losses in the greenback pushed the rupee higher.

The rupee had touched an all-time low of 69.10 against the dollar on June 28. On Thursday, the Indian currency plunged for the second straight session to hit a fresh closing low of 68.95, sliding by 21 paise following a panic demand for the US dollar coupled with savage capital flight worries. 

According to a PTI report, the Indian currency stands out as one of the most vulnerable and worst performing currencies in Asia with an almost 8 per cent fall in the value against the resurgent dollar bull.

Global trade tensions and rising oil prices are expected to wane rupee over the next year also. The rupee has been stressed by a sell-off in emerging markets driven by the daily escalation in global trade tensions and on worries of a widening current account deficit from the rising price of oil, reported Reuters.

Meanwhile, the domestic stock markets rallied on Tuesday with the Sensex reclaiming the 36,000 mark and the Nifty recapturing at 10,900 level. BSE Sensex climbed 161.08 points, or 0.44 per cent, to 36,095.80 in morning trade. According to provisional data issued by stock exchanges, foreign portfolio investors (FPIs) sold shares worth a net of Rs 569.91 crore on Monday. (With Agencies inputs)