Rupee Declines 7 Paise To Close At 95.68 Against US Dollar, Weighed Down By High Crude Prices & West Asia Tensions

Mumbai: The Indian rupee fell 7 paise on Tuesday, settling at 95.68 against the US dollar, hampered by high crude oil prices and ongoing tensions in the Middle East. Forex experts anticipate the USD/INR pair to exhibit a slight negative trend, driven by the ongoing US-Iran deal stalemate, surging crude oil prices, and stronger dollar support.

The rupee opened at 95.68 at the interbank foreign exchange and fluctuated between 95.64 and 95.69 throughout the trading session. Rupee Declines 27 Paise To Close At 87.52 Against US Dollar On Monday, the rupee lost 19 paise to close at 95.61 per dollar on Monday. With Brent crude surpassing USD 90 per barrel and the Strait of Hormuz reopening still pending, oil prices will remain a crucial factor influencing the rupee, inflation, and foreign inflows, stated Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd. Weak global cues and foreign institutional investors (FIIs) selling equities worth Rs 2,535 crore on Monday, the highest since three weeks, also contributed to the bearish sentiment.

The dollar index, which measures the strength of the greenback against six major currencies, was at 99.60, down 0.04 percent. Brent crude rose by 0.01 percent to USD 90.88 per barrel in futures trading. Elevated crude prices, geopolitical uncertainty, and foreign selling are expected to sustain bearish sentiment in the near term, while robust domestic fundamentals and ongoing policy support may offer a positive medium-term outlook, Khemka added.

The Bombay Stock Exchange's Sensex closed 492.70 points lower at 77,235.46, and the Nifty fell 132.75 points at 24,154.90. On the domestic equity market, foreign institutional investors sold equities worth Rs 2,535.10 crore on a net basis on Monday, according to exchange data.