Indian Rupee Weakens Against US Dollar
By ThePip Desk
The Indian Rupee depreciated by 3 paise against the US Dollar to 95.25, influenced by a strong USD and rising Brent crude prices. Market eyes US payrolls data.
The Indian rupee registered a 3 paise depreciation against the US dollar in early trade on Friday, settling at 95.25. This marks a weakening from its previous close of 95.22 observed on Thursday.
During early trading, the partially convertible currency touched an intraday high of 95.2875 and a low of 95.2425.
Key Market Drivers
The rupee’s decline was primarily influenced by the strengthening American currency. Market participants are closely watching the upcoming US July nonfarm payrolls report, which could offer insights into labor market conditions and potentially signal future Federal Reserve monetary policy decisions.
Further pressure on the rupee came from rising Brent crude oil prices. Renewed tensions in the Strait of Hormuz introduced fresh uncertainty regarding efforts to fully reopen this critical shipping route, contributing to the upward movement in oil benchmarks.
Data from exchanges revealed that Foreign Institutional Investors (FIIs) were net sellers on Thursday, offloading equities worth Rs 17.86 crore. This outflow also contributed to the currency’s weaker performance.
The combination of a robust US dollar, escalating crude prices, and sustained FII outflows collectively pushed the Indian rupee lower against its American counterpart in Friday’s initial trading session.