Rupee Rises 3 Paise To 94.78 Against US Dollar In Early Trade, High Crude Oil Prices And FII Outflows Limit Gains
· Free Press Journal
Mumbai: The Indian rupee appreciated marginally by 3 paise to 94.78 against the US dollar in early trade on Friday, October 23, as the domestic currency remained under pressure from elevated crude oil prices and continued foreign institutional investor (FII) outflows.
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Forex traders said global dollar strength and rising oil prices restricted the rupee's recovery despite positive momentum in Indian stock markets.
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At the interbank foreign exchange market, the rupee opened at 94.78 against the American currency, registering a gain of 3 paise from its previous closing level. On Thursday, the Indian currency had settled at 94.81 against the US dollar. Currency market participants remained cautious amid global economic uncertainty and persistent foreign fund withdrawals.
Crude Oil Prices Remain Elevated
Brent crude futures rose 0.42 per cent to USD 113.65 per barrel, adding pressure on India's import-dependent economy. Higher crude oil prices generally increase demand for dollars from oil-importing companies, creating additional challenges for the rupee. Meanwhile, the dollar index advanced 0.04 per cent to 101.64, reflecting marginal strength in the American currency.
Foreign Investors Continue Selling Indian Equities
Foreign Institutional Investors sold Indian equities worth Rs 3,458.70 crore on Thursday, according to stock exchange data. Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, said investors were favouring safe-haven dollar assets amid elevated US Treasury yields.
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Despite currency market concerns, domestic equity benchmarks traded positively during early trading. The BSE Sensex climbed 343.48 points to 73,592.87, while the NSE Nifty 50 gained 41.65 points to 22,729.30.
Forex traders will closely monitor global crude oil prices, US bond yields, dollar movements and foreign investment flows for further direction in the rupee.