Rupee Slips to 91.89 Against US Dollar in Early Trade Amid FII Outflows
Rupee Opens Weaker in Interbank Market
The Indian rupee declined by 4 paise to 91.89 against the US dollar in early trading on Wednesday, pressured by continued foreign institutional investor outflows and geopolitical tensions in the Middle East.At the interbank foreign exchange market, the domestic currency opened at 91.92 against the US dollar before strengthening slightly to 91.89. The move marked a 4 paise decline compared to its previous closing level.
Recovery Seen in Previous Session
In the previous trading session, the rupee had staged a sharp recovery from its record low, gaining 36 paise to close at 91.85 against the US dollar.During Tuesday’s session, the currency had weakened to 92.19 before recovering later in the day.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, inflows from the SBI bond issue and intervention by the Reserve Bank of India helped support the rupee.
He stated that the central bank appeared uncomfortable with the rupee repeatedly approaching the 92.00 mark and ensured that the level was not breached for the time being.
For the current trading day, Bhansali expects the rupee to move within a range of 91.50 to 92.10.
Crude Oil Prices and Dollar Index Ease
Global crude oil prices were lower during the session. Brent crude, the international benchmark, declined 0.38 percent to USD 87.47 per barrel in futures trade.The US dollar index, which measures the greenback’s strength against a basket of six currencies, was also slightly weaker. It slipped 0.04 percent to 98.78.
Domestic Equity Markets Trade Lower
Indian equity markets were trading in negative territory during the morning session.The Sensex declined 96.12 points to 78,109.86, while the Nifty fell 22.95 points to 24,238.65.
Exchange data showed that foreign institutional investors sold equities worth ₹4,672.64 crore on a net basis on Tuesday, adding pressure on the domestic currency and equity markets.
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