Rupee Slips to 92.43 Against US Dollar in Early Trade Amid FII Outflows and Stronger Dollar
Forex Market Update: Rupee Edges Lower in Opening Session
Mumbai, March 18: The Indian rupee weakened marginally by 3 paise to 92.43 against the US dollar in early trade on Wednesday, pressured by sustained foreign institutional investor outflows and a firmer US dollar amid the ongoing Middle East conflict.At the interbank foreign exchange market, the rupee opened at 92.42 and slipped slightly to 92.43, compared to its previous closing level.
Recent Trend: Rupee Near Record Lows
The domestic currency has been under pressure in recent sessions. On Tuesday, the rupee touched an intraday low of 92.47 before settling at a record closing low of 92.40, down 12 paise from the previous session.Key Factors Impacting the Rupee
Forex traders indicated that persistent dollar demand from foreign investors and oil companies continues to weigh on the rupee.According to exchange data, foreign institutional investors offloaded equities worth Rs 4,741.22 crore on Tuesday, contributing to the pressure on the domestic currency.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted that the rupee has been trading within a narrow band in recent days, with the Reserve Bank seen protecting the 92.50 level. He added that steady dollar buying by foreign investors and oil companies is keeping the rupee under strain.
Global Cues: Dollar Strength and Oil Price Movement
The dollar index, which tracks the US dollar against a basket of six major currencies, was trading 0.03 percent higher at 99.60, reflecting continued strength in the greenback.Meanwhile, Brent crude futures declined 1.32 percent to USD 102.0 per barrel. Traders noted that while crude prices have eased, they remain elevated above the USD 100 mark due to the ongoing geopolitical tensions in the Middle East.
Equity Market Support Limits Losses
Despite the downward pressure, the rupee’s fall was limited by a positive opening in domestic equity markets and a decline in global crude oil prices.The Sensex advanced 373.53 points, or 0.49 percent, to 76,444.37, while the Nifty gained 114.40 points, or 0.49 percent, to 23,695.55 in early trade, offering some support to the local currency.
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