Indian Rupee Slips Below 96 Against Dollar At Opening Bell, Investors Track Global Economic Signals
Mumbai: The Indian rupee breached the 96 mark against the US dollar in early trade on Thursday, pressured by global sentiment, high crude oil prices and a stronger currency. The domestic unit opened at 95.88 at the interbank foreign exchange market before falling 19 paise to 96.10. This was its weakest level since July 24 and marked the first breach of 96 in over two months. RBI intervention…
The Indian rupee slipped below the 96 mark against the US dollar at the opening bell on Thursday, signaling a weakening trend driven by global economic factors and rising crude oil prices. The domestic currency opened at 95.88, before slumping 19 paise to reach its lowest level in over two months at 96.10. The Reserve Bank of India's (RBI) intervention aimed to support the rupee, and it subsequently rebounded, climbing to 95.81, a gain of 10 paise from the previous day's close. Traders believed the RBI's move helped curb the currency's losses.
The rupee faced additional pressure on Wednesday, closing down 27 paise to 95.79, marking its seventh consecutive session of decline. Since September 4, the currency has lost 148 paise, representing more than 1.4% depreciation. This decline coincided with the US Federal Reserve's decision to raise interest rates by 25 basis points, the first hike in three years.
The hike bolstered the dollar, adding pressure on emerging market currencies like the rupee. The dollar index, which gauges the greenback's strength against six major currencies, rose 0.10% to 100.07.
India's heavy reliance on imported crude oil posed another challenge for the rupee, as the value of oil influences the trade deficit and currency strength. Brent crude, a key global oil benchmark, experienced a slight decline of 0.26% but remained at $105.55 per barrel, demonstrating sustained high oil prices. Amid global uncertainty, the US House of Representatives passed a bill allowing sanctions on Russia and imposing steep tariffs on nations importing Russian oil and gas, including India and China.
Despite these headwinds, domestic equities offered some respite. The Sensex gained 183.42 points to 74,519.87, while the Nifty rose 71.45 points to 23,288.65. However, foreign institutional investors continued to sell Indian equities, divesting ₹2,032.61 crore on Wednesday, further exerting pressure on the domestic financial markets.
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- Rupee slips below 96 per dollar level in early trade thehindubusinessline.com
