The rupee fell 32 paise to an all-time low of 89.85 per dollar in early trade on Tuesday due to widespread strengthening of the US currency in overseas markets and continuous outflow of foreign capital. Forex traders said strong demand for the dollar from companies, importers and foreign investors put pressure on the rupee.

What was the dollar index?

The rupee opened at 89.70 against the US dollar in the interbank foreign exchange market. Then it fell to a record low of 89.85 per dollar, which shows a fall of 32 paise from the previous closing price. The rupee had closed at 89.53 per dollar on Monday after falling to 89.79 per dollar in intraday trade. Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, stood at 99.41.

stock market crash

On the domestic stock market front, in early trade, Sensex fell by 223.84 points or 0.26 percent to 85,418.06 points while Nifty slipped by 59 points or 0.23 percent to 26,116.75 points. International standard Brent crude fell 0.03 percent to $ 63.15 per barrel. According to stock market data, foreign institutional investors were sellers on Monday and sold shares worth a net Rs 1,171.31 crore.

What are the experts’ estimates?

Experts believe that the reason for the fall in the currency is daily selling and NDF expiry covering by foreign portfolio investors without any support from RBI. According to Reuters report, there is a possibility that RBI may have sold dollars to prevent the currency from falling below the level of 90.