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Today, on Tuesday, there was pressure on the Indian currency in the early trade and the Indian Rupee fell by 35 paise against the US dollar and reached its lowest level of 95.63.

Business News: The Indian currency market witnessed major volatility on Tuesday, when the Indian rupee fell to its all-time low against the US dollar. The rupee opened at 95.57 in early trade and later fell to a record low of 95.63. This shows a decline of 35 paise compared to the previous closing price.

This decline has come at a time when global geopolitical tensions, rising crude oil prices and continuous selling by foreign investors have increased pressure on the Indian currency.

Continuous decline in rupee, increased concern in the market

Even on Monday, the Indian Rupee was under heavy pressure and fell by 79 paise to close at a record low of 95.28. The fall for the second consecutive day has increased the concern of investors and market analysts. Slight strength in the dollar index is also creating additional pressure on the rupee. The US dollar index has risen 0.19 percent to 98.14, showing the dollar in a strong position globally.

The biggest reason for pressure on the rupee is the sharp increase in crude oil prices in the international market. Brent crude oil has increased by 0.85 percent to $ 105.10 per barrel. According to experts, uncertainty over global supply and rising tensions in the Middle East have affected the oil market. According to reports, the increasing tension between America and Iran has increased the concern of investors, due to which there is instability in the energy market.

In addition, the production of OPEC countries has also reached the lowest level in recent years, further deepening the global supply crisis. Big energy companies like Saudi Aramco have also warned that global oil reserves are depleting rapidly, due to which further increase in prices is possible.

Pressure due to heavy selling by foreign investors

Withdrawal of foreign capital from Indian markets is also becoming a major reason for the weakness of the rupee. According to stock market data, foreign institutional investors (FIIs) sold shares worth about Rs 8,437 crore on Monday alone. According to reports, foreign investors have pulled out more than $20 billion from the Indian market following the recent geopolitical tensions. This huge withdrawal has put additional pressure on the Indian currency.

The effect of rupee’s weakness was clearly visible on the domestic stock market also. In early trade, Sensex fell 525.44 points to 75,489.84, while Nifty was seen trading 164.5 points lower at 23,651.35. Market experts believe that Indian equity markets also remain unstable due to withdrawal of foreign investments and global uncertainty.