Rupee falls 11 paise to 95.84 against US dollar in early trade

The Indian rupee weakened further, dropping 11 paise to 95.84 against the US dollar in early trading on Thursday. This drop came as geopolitical tensions escalated, driving crude oil prices to new highs and causing US bond yields and the greenback to rise. Forex experts believe that despite foreign capital inflows, the local currency suffered due to heavy selling in the domestic stock market and the strengthening American currency.

The rupee opened at 95.84 against the dollar on Thursday, remaining under pressure and slipping 11 paise from its previous close. On Wednesday, the rupee had slipped 11 paise to 95.73 against the US dollar, after gaining 16 paise the day before. The dollar index, which measures the strength of the greenback against six major currencies, was at 100.87, up 0.06 percent.

Brent crude futures, the global oil benchmark, fell 0.97 percent but stayed high at $102.08 per barrel, up from around $72 per barrel in late February before the Iran conflict. Analysts noted that although oil prices stabilized recently, they surged again past $100 a barrel due to lack of diplomatic progress over a Middle East peace deal after US and Iranian officials met at the UN General Assembly in New York.

Earlier, President Donald Trump warned during a speech at the annual gathering that the US might annihilate Iran if a deal couldn't be reached. On the domestic equity market, the Sensex fell 506.43 points, or 0.68 percent, to 74,321.82, while the Nifty dropped 181 points, or 0.77 percent, to 23,266.15. Foreign Institutional Investors (FIIs) bought stocks worth ₹1,617.45 crore on a net basis on Wednesday, according to exchange data.