After showing signs of improvement in early business, the rupee was declining early on Wednesday. It dropped 21 paise to 71.79 against the dollar. The key reason for this is the sudden inventory of the dollar on behalf of banks and importers.
The rupee was 37 paise lower at 71.58 against the dollar on Tuesday. This morning it was noticed improvement and it opened at 71.43. In the morning trade, the rupee remained unchanged at 71.40 to 71.79 against the dollar.
According to the currency traders, due to the emergence of emerging economies in the crisis of currencies and the steady rise in the prices of crude oil, its trend is fluctuating with the estimated demand of the rupee. Apart from this, the continuous strengthening of foreign currencies has also led to a decline in rupee.