Rupee Slips 4 Paise to 90.24 Against US Dollar as Global Uncertainty Lifts Greenback

Early Trade Sees Pressure on Rupee​

The Indian rupee opened on a weaker note on Monday and declined by 4 paise to 90.24 against the US dollar in early trade, weighed down by heightened geopolitical uncertainty that strengthened demand for the American currency.

At the interbank foreign exchange market, the rupee began the session at 90.21 against the dollar and moved lower to 90.24 in initial deals.

Geopolitical Developments Impact Currency Sentiment​

Market participants pointed to global developments following a US military operation in Venezuela, which led to the removal of President Nicolas Maduro. US President Donald Trump stated that the United States would take control of the South American nation and utilise its oil reserves for supply to other countries.

These developments supported the US dollar, even as softer crude oil prices offered limited relief to the rupee.

Dollar Index Firms, Crude Oil Eases​

The dollar index, which measures the strength of the greenback against a basket of six major currencies, was trading 0.36 percent higher at 98.50.

Brent crude, the global oil benchmark, edged 0.07 percent lower to USD 60.70 per barrel in futures trade.

Equity Markets Open Lower​

Domestic equity benchmarks also opened in the red. The 30 share Sensex slipped 135.81 points to 85,626.20 in early trade, while the Nifty declined 25.75 points to 26,302.80.

FII Activity and Forex Reserves Update​

Foreign institutional investors turned net buyers on Friday, purchasing equities worth Rs 289.80 crore.

Data released by the Reserve Bank of India showed that India’s foreign exchange reserves rose by USD 3.293 billion to USD 696.61 billion for the week ended December 26. In the previous reporting week, reserves had increased by USD 4.368 billion to USD 693.318 billion.