Rupee Falls 7 Paise to 95.40 vs USD Amid Oil & Geopolitical Tensions
By Market Desk
Indian Rupee depreciates 7 paise to 95.40 against the US Dollar, influenced by rising crude oil prices and US-Iran geopolitical tensions. Market insights included.
The Indian rupee registered a 7-paise depreciation against the US dollar, opening at 95.40 in early trade on Thursday.
This decline follows its previous closing rate of 95.33 against the American currency on Wednesday, primarily attributed to elevated crude oil prices and persistent geopolitical risks.
Market Movers & Key Figures
- The dollar index, measuring the greenback’s strength against six major currencies, was recorded at 100.01.
- Brent crude, the international oil benchmark, saw a decrease of 1.22 percent, trading at USD 87.89 per barrel in futures.
- Foreign institutional investors (FIIs) were net sellers of equities worth Rs 1,002.50 crore on Wednesday.
- Domestically, the Sensex dropped 152.97 points to 77,813.38, while the Nifty fell 84.80 points to 24,351.15.
Forex traders noted fragile investor sentiment stemming from the unresolved standoff between the US and Iran over the Strait of Hormuz. Iran has threatened to keep the crucial shipping lane closed until 2029, a claim countered by the US President’s assertion of American command.
Expert Outlook
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, observed the rupee’s opening at 95.40. This occurred despite oil prices nearing USD 88 a barrel and a higher dollar index at 100.01, contrasting with its strengthening to 95.25 on Wednesday.
Bhansali further highlighted the Reserve Bank of India’s consistent intervention, stating the RBI has supported the rupee within the 95.41-95.45 range. This action has reportedly counteracted downward pressure driven by oil demand.
The rupee’s performance continues to be shaped by a confluence of global energy market dynamics and geopolitical tensions, with central bank intervention providing a crucial floor.