Rupee Inches Up to 90.73 Against US Dollar in Early Trade as Crude Prices Ease

Indian Rupee Opens Marginally Higher Amid Mixed Global and Domestic Cues​

Mumbai, February 17: The Indian rupee edged higher by 1 paisa to 90.73 against the US dollar in early trade on Tuesday, drawing support from softer global crude oil prices.

At the interbank foreign exchange market, the rupee opened at 90.72 against the greenback before slipping slightly to 90.73. The local currency had settled 8 paise lower at 90.74 in the previous session.

Stronger Dollar, FII Outflows Limit Rupee Gains​

Despite the initial uptick, gains in the rupee remained capped due to a strengthening US dollar and continued foreign institutional investor outflows, according to forex traders.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said the rupee was well offered on Monday even though it closed lower. He noted that suspected intervention by the Reserve Bank of India has so far prevented the currency from breaching the 91 mark and discouraged speculative short positions.

The dollar index, which tracks the US dollar’s strength against a basket of six currencies, was trading 0.23 percent higher at 97.14.

Brent Crude Falls Below USD 69 per Barrel​

Brent crude, the global oil benchmark, declined 0.47 percent to USD 68.33 per barrel in futures trade. Lower crude prices typically support the rupee, given India’s status as a major oil importer.

Domestic Equity Markets Trade Lower​

On the domestic equities front, benchmark indices opened in the red. The Sensex fell 245.87 points to 83,031.28 in early trade, while the Nifty declined 106.45 points to 25,576.30.

Exchange data showed that foreign institutional investors offloaded equities worth Rs 972.13 crore on Monday, adding pressure to the currency and markets.

WPI Inflation Rises for Third Straight Month​

Government data released on Monday indicated that wholesale price inflation rose to 1.81 percent in January, marking the third consecutive monthly increase. The rise was driven by higher prices of food items, non-food articles, and manufactured goods on a month-on-month basis.

Exports Edge Up, Trade Deficit Widens​

Official data also showed that India’s exports rose marginally by 0.61 percent to USD 36.56 billion in January. However, the trade deficit widened to a three-month high of USD 34.68 billion during the month.

The combination of currency movement, inflation trends, trade data, and global cues continues to shape market sentiment as investors assess the near-term outlook for the rupee and broader financial markets.