The domestic unit is seeing no respite due to several macro-economic concerns such as the rising crude oil price which is volatile given the international situation. Also the month end dollar demand is putting an increasing pressure on the Indian rupee which after declining by 25 paise in today's trade was last seeing trading at 68.54. Such levels of rupee currency was last reached on November 30, 2016.
Sustained outflow of foreign funds is also worsening the impact on the Indian currency. The rupee's fall is obvious given the fundamentals but going ahead it will be interesting to note how the apex bank interferes to keep the rupee stable and not go beyond the suggested price range.
On Tuesday, the rupee closed lower by 19 paise at 68.25 against the greenback. Overall, FIIs or foreign institutional investors sold close to Rs 538.40 crore worth of shares while domestic institutional investors or DIIs sold scrips valued at Rs 238.05 crore.
The stock markets however opened steady led by gains due to strong buying. The BSE Sensex traded higher by 81.01 points at 35,571.05 points, while the NSE Nifty 50 traded flat at 10,774.05 points.