Rupee Falls 16 Paise to Close at 92.01 Against US Dollar as Crude Oil Prices Surge
Rising Oil Prices and Stronger Dollar Pressure the Indian Currency
The Indian rupee weakened on Wednesday, falling by 16 paise to settle at 92.01 against the US dollar in the interbank foreign exchange market. The decline comes as global crude oil prices surged and the US dollar strengthened amid escalating tensions in West Asia.Currency traders said the rupee also faced pressure due to continued foreign institutional investor outflows and weak sentiment in domestic equity markets.
Rupee Trades in Volatile Range During the Session
During the trading session, the rupee opened at 91.92 against the US dollar. It moved within a range of 91.85 to 92.06 before ending the day at 92.01, marking a decline of 16 paise from the previous close.In the previous session on Tuesday, the rupee had staged a strong recovery from its record low, gaining 36 paise to settle at 91.85.
Global Risk Sentiment and FII Outflows Weigh on Currency
Market participants noted that a mix of global and domestic factors influenced the rupee’s movement.Weak domestic equity markets, rising crude oil prices, and global risk aversion contributed to the currency’s decline. Outflows from foreign institutional investors also continued to add pressure.
Traders are also closely watching geopolitical developments in West Asia, which could influence global markets and energy prices in the near term.
Key Global Indicators: Dollar Index and Crude Oil
The US dollar index, which measures the strength of the greenback against a basket of six currencies, was trading 0.14 percent higher at 98.96.Meanwhile, Brent crude oil futures rose sharply by 5.44 percent to USD 92.58 per barrel, reflecting increased volatility in energy markets.
Domestic Equity Market Decline Adds Pressure
The weakness in the rupee coincided with a sharp decline in Indian equity markets.The BSE Sensex dropped 1,342.27 points to close at 76,863.71, while the NSE Nifty fell 394.75 points to settle at 23,866.85.
Exchange data showed that foreign institutional investors sold equities worth Rs 4,672.64 crore on a net basis on Tuesday, adding to the pressure on the domestic currency.
Market Range in Focus
Market participants are also awaiting key US inflation data, which may influence global currency movements and investor sentiment.Currency traders expect the USD-INR spot rate to move within a range of 91.70 to 92.40 in the near term as markets react to global cues and geopolitical developments.
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