Rupee falls 21 paise to 94.95 against US dollar in early trade
The local currency’s decline comes amid rising crude oil prices nearing $100 a barrel and heightened geopolitical tensions, while a weakening dollar offers some support against further losses.
On Wednesday, the Indian rupee slipped 21 paise to 94.95 against the US dollar, impacted by rising crude oil prices nearing the USD 100-a-barrel mark due to heightened tensions between the US and Iran. The local currency opened at 94.80 against the US dollar on the interbank foreign exchange market and fell 21 paise from its previous close.
On Tuesday, the rupee dropped 18 paise to close at 94.74 against the American currency. Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, noted that the rupee is anticipated to trade with a negative bias as crude oil prices surge and geopolitical tensions escalate. The weak dollar may provide some support to the rupee at lower levels.
Investors are currently monitoring US and Indian inflation data. The dollar index, which measures the greenback's strength against a basket of six currencies, is at 98.76, down 0.03 percent from its previous level. Brent crude, the global oil benchmark, has risen 1.41 percent to USD 99.30 per barrel amid escalating US-Iran tensions and concerns over potential disruptions to oil flows through the Strait of Hormuz.
Meanwhile, the Sensex and Nifty in the Indian equities market declined significantly in early trade, while foreign institutional investors sold equities worth Rs 123.19 crore on a net basis.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
