Rupee Slides To 93.88 Against Dollar Amid Dollar Strength And Crude Price Rise
Rupee falls 35 paise to 93.88/USD on strong dollar, crude prices, and foreign fund outflows.
The Indian rupee fell 35 paise to a provisional low of 93.88 against the US dollar on Tuesday, marking continued pressure on the domestic currency amid global uncertainties and elevated crude oil prices.
At the interbank foreign exchange, the rupee opened at 93.66 and remained volatile throughout the session before settling at 93.88, down from its previous close. Analysts attributed the decline to a strengthening greenback against major currencies, persistent foreign portfolio investor (FPI) outflows, and concerns over the ongoing West Asia crisis.
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, noted, “A strong US dollar is keeping emerging market currencies weak, and the INR has weakened by about 4.5 per cent during the month. The rupee range for Wednesday is expected to be 93.65 to 94.25.” The rupee had breached the 94-level against the dollar on Monday before closing at 93.53.
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Global crude prices added to the pressure on the rupee. Brent crude was trading at USD 101.4 per barrel in futures, down 1.45 per cent, while market uncertainty remained elevated following U.S. President Donald Trump’s extension of the deadline for Iran to reopen the Strait of Hormuz. Although Trump claimed Iran was open to a deal, Tehran denied any such discussions, maintaining regional tensions that contributed to oil price volatility.
The dollar index, which tracks the greenback against a basket of six major currencies, rose 0.23 per cent to 99.18, reinforcing the rupee’s downward trajectory. At the same time, domestic equities showed resilience, with the Sensex gaining 1,372.06 points to 74,068.45 and the Nifty rising 209.65 points to 22,722.30.
Foreign institutional investors remained net sellers, offloading equities worth ₹10,414.23 crore on Monday. Market participants indicated that continued geopolitical uncertainty and portfolio outflows could maintain pressure on the rupee in the near term.
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