Rupee Falls 12 Paise to 95.45 Amid West Asia Tensions & FII Outflows

The Indian rupee concluded Thursday’s trading session at 95.45 against the US dollar, marking a 12-paise depreciation from its previous close of 95.33 on Wednesday.

This weakening occurred amidst persistent West Asia tensions and capital outflows by foreign institutional investors, which collectively weighed on market risk sentiment.

Key Market Figures

• Rupee’s provisional close: 95.45 against the US dollar.
• Weakened by: 12 paise from Wednesday’s close.
• Previous close: 95.33 on Wednesday.
• Intraday high: 95.48.
• Intraday low: 95.35.
• FII net selling on Wednesday: Securities worth Rs 1,002.50 crore.

Driving Factors

Lingering geopolitical tensions in West Asia significantly impacted the rupee’s performance. Talks between Washington and Tehran to de-escalate the conflict reached an impasse, contributing to market jitters.

Adding to the pressure, foreign institutional investors (FIIs) were net sellers in Wednesday’s session. These capital outflows directly influenced market risk sentiment, pulling the rupee lower.

Traders largely overlooked the recent signing of the Terms of Reference (ToR) between India and the Southern African Customs Union (SACU). This agreement sets the foundation for negotiations toward a Preferential Trade Agreement (PTA), reflecting a shared commitment to advancing mutually beneficial trade relations.

Globally, the Japanese yen demonstrated mild strength against the US dollar. This move came as market participants maintained caution regarding potential intervention from authorities amid the yen’s sustained weakness.