Noida, Apr 21 (APAC Media): The Indian rupee fell on Tuesday, declining by 32 paise to settle at 93.48 against the US dollar, as both global and domestic pressures influenced the currency, according to forex market data.
The domestic currency opened at 93.24 in the interbank foreign exchange market but soon weakened during the trading session, touching an intraday low of 93.64 before recovering slightly to settle at its provisional closing level.
Market participants attributed the fall primarily to a firm US dollar, volatile crude oil prices, and ongoing uncertainty in global geopolitical conditions.
Analysts said investor sentiment was also influenced by developments in West Asia, where fluctuating peace negotiations have kept energy markets unstable. Rising crude oil prices added further pressure, given India’s dependence on oil imports, which widens the trade deficit and impacts currency stability.
The rupee struggled to find support. Although the Sensex and Nifty closed higher, foreign exchange traders said capital inflows were not strong enough to counter the overall strength of the US dollar.
However, the currency also responded to recent policy changes by the Reserve Bank of India, which has relaxed certain restrictions on speculative trading in non-deliverable forward markets.
On the global front, the US dollar index remained strong, reflecting expectations of sustained US economic resilience. Foreign institutional investors were also seen offloading equities, adding to dollar demand in the domestic market.
Although the move is intended to enhance liquidity and improve market efficiency, some traders feel it has contributed to short-term volatility in the rupee.
News Agency Inputs
Disclaimer:
Gold prices and rates are for informational purposes only. APAC Media is not liable for any discrepancies or financial decisions made based on this data. Please consult an authorised advisor before making investment choices.
Also Read:
Discussion about this post