Rupee Takes A Sharp Hit, Plunges 34 Paise To 95.08 Against Dollar As Crude Crosses $100
· Free Press Journal
Mumbai: The Indian rupee came under sharp pressure on Wednesday, falling 34 paise to close provisionally at 95.08 against the US dollar, as Brent crude crossed the $100-per-barrel mark amid escalating US-Iran tensions.
Concerns over higher inflation, foreign fund outflows and weakness in domestic equity markets also weighed on the Indian currency.
Visit newsbetting.bond for more information.
Rupee Touches 95.22 During Trade
At the interbank foreign exchange market, the rupee opened at 94.80 against the US dollar, which was also its intraday high.
As crude oil prices climbed, the currency weakened to an intraday low of 95.22 before recovering some losses and settling at 95.08. It had closed at 94.74 in the previous session.
Rupee Starts On A Weak Note, Slides 10 Paise To 94.66 Against US Dollar In Early TradeThe dollar index, which tracks the greenback against six major currencies, edged 0.05% higher to 98.84.
Brent Crude Crosses $100
Brent crude futures climbed 2.94% to $100.73 per barrel, crossing $100 for the first time in almost six weeks.
Oil prices surged after attacks on energy infrastructure and ships in West Asia intensified concerns over already strained global supplies amid the US-Iran conflict.
Higher crude prices are particularly significant for India because the country depends heavily on imported oil. A prolonged increase can raise the import bill and add pressure on inflation and the rupee.
FII Selling Adds Pressure
Foreign institutional investor outflows also weighed on the USD-INR exchange rate. FIIs sold Indian equities worth a net ₹123.19 crore on Tuesday, exchange data showed.
FIIs Sell ₹5,610 Crore In 3 Sessions, DIIs Pour ₹23,160 Crore Into Indian Stocks Despite Market FallDomestic markets witnessed another sharp sell-off. The Sensex plunged 813.35 points to 74,764.23, while the Nifty dropped 203.60 points to 23,431.50.
The rupee could continue to face pressure if crude prices remain elevated and geopolitical tensions intensify, though movements in the US dollar may influence its near-term direction.