Noida, June 18, (APAC Media): The Indian rupee depreciated 21 paise to 94.71 against the US dollar in early trade on Thursday, weighed down by a stronger greenback overseas and cautious market sentiment following the U.S. Federal Reserve’s latest policy outlook.
Forex traders said the dollar gained support after the Federal Reserve signalled that interest rates could remain elevated for a longer period, boosting demand for the U.S. currency and putting pressure on emerging-market currencies.
At the interbank foreign exchange market, the rupee opened lower and extended losses during the morning session.
The domestic currency had settled at 94.50 levels against the dollar in the previous trading session.
Market participants said global factors remained the primary driver of currency movements, with investors closely tracking U.S. economic data, Treasury yields and central bank commentary.
Meanwhile, easing crude oil prices and expectations of foreign capital inflows are likely to provide some support to the rupee, analysts said. India, being a major crude importer, typically benefits from lower oil prices as they reduce demand for dollars and help improve the country’s trade balance.
Investors will continue to monitor global market trends, movements in the dollar index and geopolitical developments for further cues on the rupee’s trajectory, traders added.
–ENDS–
Disclaimer:Â Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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