Rupee Weakens Over 20 Paise Against Dollar: 3 triggers to watch – CNBC tv18

The Rupee Weakened to 87.78 Against the Us Dollar in Early Trade on TuesDay (August 26), Slipping 22 Paise after the United States Confirmed Its Plan to IMPOSE An Adian Immort August 27.

The draft notice from the US department of homeland security rekindled Concerns over Trade Relations, Pushing Importers to Step Up Up Dollar Purchases.

Traders noted the move leaves the rupee close to its lifetime low of 87.95.

Market Participants Highlighted Three Key Factors Driving The Fall:

• Tariff Shock-The Proposed 25% Levy on Indian Goods Has Removed Hopes of a Last-Minute Compromise, Triggering Risk Aversion.
• Geopolitical Strain – With Peace Talks Between Russia and Ukraine Stalling, The Outlook for Sanctions and Trade Restrictions have been.
• Investor Flows – Foreign Institutional Investors (FIIS) Offloaded Equites Worth ₹ 2,466 Crore on Monday (August 25), Adding to pressure on the currency.

The weakness came despite a softter dollar index, which slipped 0.05% to 98.38 after us President Donald Trump dismissed Federal Reserve Governor Lisa Coook.

Brent Crude Traded Marginally lower at $ 68.52 a Barrel, offering little respite.

“The rupee has breed 87.50, and the next hurdle is 87.80 – a level where the rbi has previously stepped in. Watched, “said Amit Pabari, Managing Director at CR Forex Advisors.

Equites mirrored the cautious mood. The sensex dropped 547 points to 81,089, while the nifty declined 179 points to 24,789.

Analysts said the RBI’s Response will be Crucial in Containing Volativity as the Currency Edges Near Record Lows.

,With agencies inputs