Mumbai, January 13: The Indian rupee closed weaker on Tuesday, slipping 4 paise to 90.21 against the US dollar in provisional trade, pressured by rising crude oil prices, a firm American currency, and continued foreign fund outflows.
At the interbank foreign exchange market, the rupee opened at 90.24 and moved lower during the session, touching an intra-day low of 90.30 against the greenback. The domestic currency eventually settled at 90.21, compared with its previous close of 90.17 recorded on Monday.
Global and Domestic Factors Impact Currency Movement
The rupee remained under pressure amid elevated geopolitical tensions and subdued risk appetite across global markets. Weakness in domestic equities further weighed on sentiment, while sustained selling by foreign institutional investors added to the downside.In global markets, the dollar index, which tracks the US currency against a basket of six major currencies, was trading 0.07 percent higher at 98.69. Meanwhile, Brent crude oil prices rose sharply, with the global benchmark trading 1.47 percent higher at USD 64.80 per barrel in futures trade, increasing concerns over India’s import bill.
Equity Markets Close in the Red
Domestic equity benchmarks ended lower, reflecting cautious investor sentiment. The 30-share Sensex declined 250.48 points, or 0.30 percent, to close at 83,627.69. The Nifty also finished weaker, falling 57.95 points, or 0.22 percent, to settle at 25,732.30.Foreign institutional investors remained net sellers, offloading equities worth Rs 3,638.40 crore on Monday, according to exchange data.
Key Macro Indicators in Focus
Recent macroeconomic data showed India’s retail inflation rising to a three-month high of 1.33 percent in December, driven largely by higher food prices, though it remained below the lower tolerance level. Separately, net direct tax collections for the current fiscal up to January 11 increased about 8.82 percent to over Rs 18.38 lakh crore, supported by slower refunds and stronger corporate tax collections.Net corporate tax receipts rose 12.4 percent to over Rs 8.63 lakh crore, while collections from non-corporates, including individuals, increased 6.39 percent to around Rs 9.30 lakh crore.
Market participants are expected to continue tracking global cues, commodity price movements, and capital flows for further direction in the rupee.
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