Noida, Apr 13 (APAC Media): The Indian rupee tumbled in early trade on Monday, slipping 49 paise to 93.32 against the US dollar, as mounting pressure from a strengthening greenback and surging global crude oil prices dampened market sentiment.
The rupee opened on a weaker note at the interbank foreign exchange market on Monday and continued to decline under sustained selling pressure, falling from its previous close of 92.83 on Friday. The drop reflects rising investor concerns over global uncertainties and ongoing strong demand for the US dollar.
Market participants said that a surge in crude oil prices, driven by geopolitical tensions in West Asia, has significantly impacted the domestic currency. As India is a major importer of crude oil, higher prices increase the demand for dollars, thereby weakening the rupee.
In addition, the strengthening of the US dollar against major global currencies has further weighed on the rupee. The dollar index remained firm, supported by expectations of prolonged higher interest rates in the United States, which has attracted foreign investments away from emerging markets like India.
A forex trader said, “The rupee is under pressure due to elevated crude oil prices and a firm US dollar. Continued geopolitical uncertainty is likely to keep the currency volatile in the near term.”
Indian equity markets also opened on a weak note, with benchmark indices witnessing declines in early trade. Foreign institutional investors were reportedly net sellers, adding to the pressure on the rupee.
However, analysts pointed out that India’s strong foreign exchange reserves may help cushion excessive volatility in the currency.
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