Stock markets generally move in tandem with the rupee and markets are expected to be weak paving the way for a downfall of the rupee.
Markets are likely to remain weak on the back of a disappointing jobs data from the US. Increasing costs on Spanish bonds have also weighed on equity markets, which would eventually put pressure on the rupee.
The GAAR issue still remains unresolved and reports now suggest that it may impact private equity players, which have bought in sizeable dollar inflows into the country.
Foreign institutional investors continue to bring dollars which has helped the rupee since the beginning of this year. However, over reliance on FII inflows to prop the rupee is not an encouraging sign.
Meanwhile, crude oil imports will continue to put pressure on the rupee, as the commodity refuses to decline.