Rupee Falls 20 Paise to 93.73 Against US Dollar Amid Strong Greenback and Oil Price Concerns

Rupee Falls 20 Paise to 93.73 Against US Dollar Amid Strong Greenback and Oil Price Concerns​

Currency Weakens in Early Trade on Global Cues​

Mumbai, March 24: The Indian rupee declined by 20 paise to trade at 93.73 against the US dollar in early trading on Tuesday, pressured by a stronger greenback and elevated global crude oil prices despite ongoing geopolitical developments.

At the interbank foreign exchange market, the domestic currency opened at 93.66 before slipping further to 93.73, compared to its previous close.

Iran US Developments Add to Market Uncertainty​

Market sentiment remained cautious after US President Donald Trump stated that negotiations were underway with Iran. He said the United States was in talks with a "respected" Iranian leader and suggested that Iran was willing to reach a deal to end the conflict.

Trump also extended a deadline for Iran to reopen the Strait of Hormuz by five days, warning of potential attacks on power infrastructure if the condition was not met.

However, Iran denied these claims, which added uncertainty in global markets and contributed to fluctuations in crude oil prices.

Oil Prices and Dollar Strength Pressure Rupee​

The rise in global oil prices continued to weigh on the rupee, as higher crude costs typically widen India’s trade deficit and increase demand for dollars.

The dollar index, which measures the US currency against a basket of six major currencies, rose 0.42 percent to 99.36, further exerting pressure on emerging market currencies including the rupee.

Brent crude futures were trading at USD 103.9 per barrel, reflecting ongoing volatility linked to geopolitical tensions.

FII Outflows Add to Downside Risk​

Heavy selling by foreign institutional investors also contributed to the rupee’s weakness. Exchange data showed that FIIs offloaded equities worth Rs 10,414.23 crore on a net basis on Monday.

According to forex market participants, sustained outflows continue to put pressure on the domestic currency.

Domestic Equities Provide Partial Support​

Despite currency weakness, Indian equity markets opened on a strong note, helping limit sharper losses in the rupee.

The Sensex rose 829.40 points, or 1.14 percent, to 73,525.79, while the Nifty gained 234.65 points, or 1.04 percent, to 22,747.30 in the morning session.

RBI Seen Monitoring Currency Levels​

Market participants indicated that the Reserve Bank of India was active around the 93.95 to 93.98 levels in the previous session.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted that the rupee remains vulnerable due to rising oil prices and ongoing global uncertainty, with the central bank likely keeping a close watch on currency movements.